Nasdaq has filed a request with the U.S. Securities and Exchange Commission (SEC) to list binary options tied to the Nasdaq‑100 index and its smaller micro version.

Nasdaq’s filing follows Cboe’s similar plans to offer prediction‑style derivatives. Both exchanges are responding to investor demand for simplified ways to speculate on short‑term market movements. The move would allow traders to make yes‑or‑no bets on the index’s direction, expanding event‑style trading into U.S. equity markets.

Demand Grows for Event-Based Trading

Under the proposal, each contract would be priced between one cent and one dollar and pay a fixed amount if the condition is met, expiring worthless otherwise.

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The structure resembles prediction‑market contracts used on crypto platforms such as Polymarket and Kalshi, where prices reflect the perceived odds of an event. While prediction‑market platforms are regulated by the Commodity Futures Trading Commission, Nasdaq’s binary options would be subject to SEC oversight.

Read more: CFTC Flags Insider Risks in Prediction Markets as Kalshi Sanctions Two Traders

Crypto companies are also advancing into the space. Coinbase has launched prediction markets for political and economic events, and Gemini received CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term approval in December to operate as a designated contract market for event‑based trading.

Joining Cboe, Coinbase, and Gemini

Cboe Global Markets is also moving into this space with its own version of all‑or‑nothing, yes‑or‑no style contracts that closely resemble prediction‑market bets on events. The exchange is exploring a regulated options product that offers fixed, all‑or‑none payouts, positioning it to compete with fast‑growing prediction platforms.

LATEST: ⚡ Cboe is developing binary options with all-or-none payouts on yes-or-no event contracts to compete with prediction platforms like Polymarket and Kalshi, according to the Wall Street Journal. pic.twitter.com/NKJPqpAVM6

— CoinMarketCap (@CoinMarketCap) February 2, 2026

Bloomberg has similarly reported that Cboe plans to roll out options that enable binary wagers on event outcomes as part of a broader push into prediction markets, using SEC‑regulated listed contracts rather than the lightly supervised or offshore structures common in crypto‑based platforms.

The volumes in the prediction markets seems to be attracting the big players. Finance Magnates reported at the start of the year that, prediction markets hit a new record with $701.7 million traded in a single day.

Kalshi led the surge, generating $465.9 million in activity, about two-thirds of the total, while Polymarket and Opinion together contributed around $100 million. The milestone surpassed the previous day’s record of $666.6 million, with Kalshi keeping a dominant market share.

The strong start to 2026 builds on Kalshi’s explosive growth last year, when the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term processed $23.8 billion in total transactions, an increase of more than 1,100% from 2024.