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Nasdaq Inc. plans to roll out options contracts that would allow yes-or-no bets on a major stock index, the latest exchange operator to put its own spin on fast-growing prediction markets. The company wants to list binary options on its flagship Nasdaq 100 Index and the Nasdaq 100 Micro Index, according to a proposed rule change filed with the US Securities and Exchange Commission. The Nasdaq contracts would be priced between 1 cent and $1, reflecting the market’s view of an outcome becoming true, the filing said.
It would be Nasdaq’s first foray into products that mirror prediction markets. The so-called Outcome Related Options would let traders take binary positions on whether a specified event happens. Binary options are a simplified version of an options contract in which the payout depends on the outcome of a yes-or-no proposition.
