Nasdaq Seeks SEC Approval for Prediction-Style Index Trading
Nasdaq is stepping further into the fast-growing world of outcome-based trading. Nasdaq MRX, a subsidiary of Nasdaq Inc., has submitted a proposal to the U.S. Securities and Exchange Commission seeking approval to list a new type of product known as Outcome-Related Options, or OROs.
- Nasdaq filed with the SEC to launch binary-style Outcome-Related Options on the Nasdaq-100.
- Contracts are yes-or-no bets with fixed cash payouts.
- Prices reflect implied probability, ranging from $0.01 to $1.00.
- Products fall under SEC oversight and target financial index outcomes only.
- A 25,000-contract position limit is proposed.
The contracts are structured as cash-settled, binary-style options that allow traders to take a simple “yes-or-no” position on specific market outcomes tied to the Nasdaq-100 Index and its Micro counterpart. Instead of traditional options pricing and complex payoff curves, these instruments offer a fixed payout if the defined condition is met at expiration – and nothing if it is not.
How The Contracts Work
Each ORO contract is priced between $0.01 and $1.00, effectively reflecting the market’s implied probability that a certain event will occur. If the condition is satisfied at expiration, the contract pays out a fixed amount, typically $1 or $100 depending on the multiplier. If the event does not occur, the contract expires worthless.
All contracts will be cash-settled, with final values determined using the Nasdaq Closing Cross. There is no physical delivery of underlying assets. The reference benchmarks include the flagship Nasdaq-100 Index – home to major non-financial companies such as Apple Inc. and Nvidia Corporation – as well as the Nasdaq-100 Micro Index, which represents one-hundredth of the full index value.
A Strategic Bet On Financial Prediction Markets
Unlike event contracts overseen by the Commodity Futures Trading Commission, Nasdaq has filed OROs as securities, placing them squarely under SEC jurisdiction. This regulatory positioning distinguishes the products from political or cultural prediction contracts and keeps the focus strictly on financial index outcomes.
The move places Nasdaq in more direct competition with prediction-oriented platforms such as Kalshi and Polymarket. However, while those venues often list contracts tied to elections or social events, Nasdaq’s proposal concentrates exclusively on structured financial benchmarks.
The exchange has also outlined safeguards, including a position limit of 25,000 contracts on the same side of the market. Although the initial filing comes through Nasdaq MRX, the company has indicated it intends to expand availability to other affiliated venues, including Nasdaq NOM and Nasdaq PHLX.
If approved, Outcome-Related Options could mark a significant shift in how retail and institutional traders express short-term views on major index performance – blending traditional exchange infrastructure with the simplicity of prediction-style markets.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
