The Nasdaq stock exchange has filed a formal request with federal securities regulators to launch a new type of prediction market focused on one of its flagship stock indexes.
According to regulatory documents filed March 2nd, the exchange is asking the Securities and Exchange Commission for permission to offer binary options trading on both the Nasdaq 100 index and its smaller counterpart, the Nasdaq 100 micro index.
The Nasdaq 100 serves as a benchmark that follows the performance of the 100 largest non-financial corporations trading on the Nasdaq exchange. This group includes technology giants such as Apple, Nvidia and Intel. The micro version represents one one-hundredth of the full index’s value.
These binary options would function as prediction markets, allowing traders to make yes-or-no bets on whether the index will reach certain price levels within specified time periods.
