Nasdaq Wants a Piece of the Prediction Market Biz Too

Decrypt

by Stacy Elliott

March 2, 2026

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Nasdaq Wants a Piece of the Prediction Market Biz Too

Nasdaq, the world’s second-largest stock exchange by market capitalization, has filed with the SEC to launch binary “Outcome Related Options” contracts, signaling its entry into the competitive prediction market space. This move positions Nasdaq directly against established players like Kalshi, Polymarket, and Crypto.com, all of which are regulated under the CFTC as Designated Contract Markets (DCMs). The company aims to offer yes-or-no bets on a range of events—ranging from stock prices and cryptocurrency movements to political outcomes and sports—through its new offering. If approved by the SEC, this will mark Nasdaq’s first foray into prediction markets, operating under a different regulatory framework compared to its rivals. The proposed binary options contracts allow traders to place bets on whether a specific event will occur or not, with payout values ranging from 1 cent to $1. These simplified derivatives are designed to appeal to both institutional and retail traders, offering a new layer of financial instruments for speculative trading. Unlike traditional options, these contracts are purely binary, making them easier to price and execute. The prediction market industry has seen exponential growth in recent years, generating billions in weekly trading volume. This rapid expansion has sparked ongoing debates about regulatory jurisdiction between the SEC and CFTC. While the CFTC currently oversees most prediction market platforms through DCM licenses, the SEC’s potential involvement adds a new layer of complexity to the regulatory landscape. NASDAQ’s entry into this space highlights the growing convergence of traditional financial markets with decentralized finance (DeFi) concepts. Wall Street giants like ICE, CME Group, and Cboe are also making moves in the prediction market arena. For instance, ICE recently invested $2 billion in Polymarket, valuing the platform at $9 billion. Meanwhile, CME has partnered with FanDuel to launch its own prediction market offerings, while Cboe is reportedly

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Originally published on Decrypt on 3/2/2026