Altcoins News

Story: Nasdaq Files for SEC Binary Options Tied to Its Index

By Sakamoto Nashi

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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…

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These contracts work pretty much like prediction markets you see on crypto platforms such as Polymarket and Kalshi, which fall under CFTC oversight.

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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…

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Cboe Global Markets is building similar all-or-none, yes-or-no contracts that look a lot like prediction-market bets.

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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.

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Kalshi's performance builds on massive growth last year, where the exchange processed $23.8 billion in total transactions.

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And volatility isn't going anywhere soon.

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Nasdaq's initiative comes as financial markets experience heightened uncertainty, driving interest in products with clear risk and reward scenarios.

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Cboe's exploration of SEC-regulated binary options shows its commitment to capturing event-driven trading market share.

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Gemini's December CFTC approval marked a significant milestone for event-based trading expansion.

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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…

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Cboe's plans underscore competitive pressure traditional exchanges face from emerging platforms.

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The SEC hasn't set a timeline for its decision on Nasdaq's proposal.

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Regulatory approval timelines typically range from several months to over a year for novel financial products.

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Major institutional players including pension funds and hedge funds have expressed interest in regulated prediction markets as portfolio diversification tools.

The Currency Analytics

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