Nasdaq Also Seeks to Enter the Prediction Market Industry

Nasdaq Plans to Launch Its Own Prediction Market

Nasdaq Inc., which operates the world’s second-largest stock exchange by market value, is preparing to introduce a new prediction market platform.

According to a recent filing with the SEC, the company aims to provide options contracts that allow participants to make yes-or-no wagers, with prices ranging from one cent to one dollar.

These new contracts, referred to as Outcome Related Options, would enable investors to take binary positions on the occurrence of specific events. Unlike traditional options, binary options offer a straightforward payout based solely on whether a particular scenario happens or not.

If regulators approve the proposed rule change, this would mark Nasdaq’s initial entry into the prediction market sector. Notably, Nasdaq’s platform would be overseen by the SEC, setting it apart from existing competitors such as Kalshi, Polymarket, and Crypto.com, which are regulated by the CFTC under Designated Contract Markets licenses.

Prediction markets function as derivative instruments, giving traders the opportunity to bet on the outcomes of a wide range of events—from financial markets and cryptocurrencies to sports, entertainment, and politics. Over the past year, this industry has seen rapid growth, with weekly trading volumes reaching into the billions.

However, there is ongoing debate regarding which federal agency—the SEC or the CFTC—should regulate these platforms. In February, CFTC Chairman Michael Selig responded to concerns from state officials and gaming authorities, who believe prediction markets overlap with their regulatory responsibilities, by stating “see you in court.”

There have also been discussions about the SEC’s potential involvement in supervising prediction markets. SEC Chair Paul Atkins has indicated that certain prediction markets might fall under the SEC’s purview.

“Prediction markets are one area where regulatory authority may overlap,” Atkins remarked in response to a question from Senator Dave McCormick (R-PA). “This is a significant issue we are closely monitoring.”

Major Financial Institutions Enter the Prediction Market Arena

Other leading financial firms have already made moves in this space.

In October 2025, Intercontinental Exchange, which owns the New York Stock Exchange, committed up to $2 billion to Polymarket, boosting the company’s valuation to $9 billion. While the official announcement described the investment as “up to $2 billion,” a Polymarket representative confirmed to Decrypt that the full amount was indeed invested.

The CME Group, a major derivatives exchange, has partnered with FanDuel to launch its own prediction market product. Meanwhile, Cboe, another prominent derivatives exchange, is pursuing a strategy similar to Nasdaq’s. According to sources cited by The Wall Street Journal, Cboe recently began discussions with brokers to introduce yes-or-no contracts.