The Nasdaq wants to compete with Polymarket and Kalshi.
The stock exchange has filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) to list and trade “Outcome-Related Options” (OROs).
If approved, OROs would entitle buyers to receive a fixed amount based on whether the underlying contract’s settlement price at expiration is at, above or below a predetermined strike price, Nasdaq said. submit.
The Nasdaq isn’t the only exchange that will take on the prediction markets: A Wall Street Journal report Last month, derivatives exchange Cboe Global Markets said it had been in talks with retail brokers to restart “all-or-nothing” options contracts.
The Nasdaq OROs would be regulated by the SEC and trade in a range of $0.01 to $1.00, which would mimic the structure of prediction market platforms such as Polymarket and Kalshi. However, prediction market platforms are regulated by the Commodity Futures Trading Commission (CFTC) rather than the SEC.
In one hearing Speaking before the Senate Committee on Banking, Housing and Urban Affairs last month, SEC Chairman Paul Atkins noted that coordinating jurisdiction between his agency and the CFTC in the area of prediction markets is a “huge issue” on which both regulators are focused.
“I can definitely say that the two agencies will be more aligned than ever before, which is why we are meeting once a week to do that with our staff.”
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