Nasdaq Proposes Outcome-Related Options to Compete with Prediction Markets
- Nasdaq has filed a proposed rule change with the SEC for “Outcome-Related Options” (OROs).
- If approved, OROs would trade between $0.01 and $1.00 and mimic prediction market structures.
- Cboe Global Markets is also exploring options contracts to compete with platforms like Polymarket and Kalshi.
- SEC Chair Paul Atkins highlighted ongoing coordination efforts between the SEC and CFTC regarding regulation of prediction markets.
The Nasdaq’s initiative aims to tap into the growing market for prediction-related trading by introducing regulated OROs under SEC oversight, contrasting with existing platforms regulated by the CFTC. This move reflects a broader trend among exchanges to diversify offerings in response to competitive pressures from decentralized finance (DeFi) and prediction markets.
With Nasdaq’s proposed OROs potentially reshaping trading dynamics, this development underscores the increasing intersection of traditional finance and digital asset markets. (Source)
