The U.S. Securities and Exchange Commission (SEC) approved a proposal from Nasdaq’s options trading platform on Thursday, allowing for the listing and trading of a new category of stock market prediction instruments linked to a major index, according to a regulatory order.
As interest in prediction markets grows, several firms are keen to enter this space, where users can wager on real-world event outcomes, generating new revenue streams and market insights. Nasdaq’s offerings will consist of cash-settled contracts that provide a predetermined payout at expiration based on whether the index closes above or below a specified level.
The SEC indicated that these binary options—a type of contract that offers a fixed payout based on yes-or-no outcomes—will have a “fixed, all-or-nothing exercise settlement amount” of $100 if they expire in the money.
Nasdaq MRX, an electronic options exchange operated by Nasdaq, is set to initially list options associated with the Nasdaq-100 index and the Nasdaq-100 Micro index. The Nasdaq-100 index comprises 100 of the largest non-financial companies listed on Nasdaq, including major players such as Apple, Nvidia, and Intel. The micro index is calculated as 1/100th of the total value of the Nasdaq-100.
The SEC granted accelerated approval for Nasdaq’s application submitted in March, noting that the proposal aligned with the requirements of the act and did not raise new regulatory concerns.
A Nasdaq spokesperson expressed, “We welcome the SEC’s approval of Nasdaq MRX’s proposal to list and trade Outcome-Related Options (OROs) tied to the Nasdaq-100 Index.” Meanwhile, Cboe Global Markets, a competitor in the options sector, is also preparing to launch its “all-or-none” styled contracts focusing on financial and economic events, pending regulatory approvals, with a target launch date in the second quarter.
Published on May 1, 2026.
