Nasdaq Inc. plans to roll out binary options contracts on its flagship Nasdaq 100 Index and Nasdaq 100 Micro Index, marking its first venture into prediction market products. The company filed a proposed rule change with the SEC for these Outcome Related Options, which would be priced between 1 cent and $1 based on whether a specified event occurs.

The move positions Nasdaq alongside other exchange operators entering the prediction markets space. Cboe Global Markets is planning event contracts focused on business and market events, while CME Group is partnering with FanDuel to power a consumer prediction market app. Binary options offer a simplified yes-or-no wager compared to traditional options contracts.

Unlike event contracts overseen by the Commodity Futures Trading Commission, these binary options would fall under SEC regulation. The Nasdaq 100 tracks the fortunes of the largest 100 companies trading on Nasdaq's exchange, including Nvidia Corp. and Apple Inc. The index's popularity among day traders, with daily-expiring options dominating trading volume, suggests these binary contracts could attract significant interest from speculators seeking new ways to bet on market movements.