Nasdaq Inc., the parent company of the second-largest stock exchange, has filed with the Securities and Exchange Commission (SEC) to introduce binary options contracts for prediction markets.
The move marks Nasdaq's entry into the rapidly growing space, where platforms like Kalshi, Polymarket, and Crypto.com are already operating. These platforms allow traders to wager on the outcome of various events, from stock prices to sports and cultural happenings.
Prediction markets have gained significant traction in recent years, with trading volumes reaching billions of dollars weekly. However, there has been ongoing debate about which federal regulator holds jurisdiction over these platforms - the SEC or CFTC.