The Currency analytics
By Sakamoto Nashi
Nasdaq wants SEC approval. The exchange filed paperwork for binary options contracts that'll cost between one cent and a dollar, paying fixed returns if certain conditions hit or…
These contracts work pretty much like prediction markets you see on crypto platforms such as Polymarket and Kalshi, which fall under CFTC oversight.
Coinbase jumped into prediction markets for political and economic events, while Gemini scored CFTC approval last December to operate as a designated contract market for…
Cboe Global Markets is building similar all-or-none, yes-or-no contracts that look a lot like prediction-market bets.
Prediction markets are pulling in major financial players now. Finance Magnates reported a record $701.7 million traded in a single day within prediction markets earlier this year.
Kalshi's performance builds on massive growth last year, where the exchange processed $23.8 billion in total transactions.
And volatility isn't going anywhere soon.
Nasdaq's initiative comes as financial markets experience heightened uncertainty, driving interest in products with clear risk and reward scenarios.
Cboe's exploration of SEC-regulated binary options shows its commitment to capturing event-driven trading market share.
Gemini's December CFTC approval marked a significant milestone for event-based trading expansion.
The SEC's decision on Nasdaq's filing will be closely watched. The outcome could set precedent for other exchanges considering similar offerings, potentially reshaping short-term…
Cboe's plans underscore competitive pressure traditional exchanges face from emerging platforms.
The SEC hasn't set a timeline for its decision on Nasdaq's proposal.
Regulatory approval timelines typically range from several months to over a year for novel financial products.
Major institutional players including pension funds and hedge funds have expressed interest in regulated prediction markets as portfolio diversification tools.