Nasdaq Files for ‘Outcome-Related Options’ Product in Bid To Siphon Market Share From Kalshi and Polymarket
The Nasdaq desires to compete with Polymarket and Kalshi.
The inventory trade has filed a proposed rule change with the U.S. Securities and Trade Fee (SEC) to listing and commerce “End result-Associated Choices” (OROs).
If permitted, OROs would entitle patrons to obtain a set quantity based mostly on whether or not the settlement worth of the underlying contract is at, above, or under a predetermined strike worth at expiration, based on the Nasdaq filing.
The Nasdaq isn’t the one trade going to bat towards prediction markets: A Wall Road Journal report final month indicated the derivatives trade Cboe International Markets has been in talks with retail brokerages to restart “all-or-nothing” choices contracts.
The Nasdaq’s OROs can be regulated by the SEC and commerce within the vary of $0.01 to $1.00, mimicking the construction of prediction market platforms like Polymarket and Kalshi. Predictions market platforms are regulated by the Commodity Futures Buying and selling Fee (CFTC) moderately than the SEC, nonetheless.
In a hearing with the Senate Banking, Housing, and City Affairs Committee final month, SEC Chair Paul Atkins famous that coordinating jurisdiction between his company and the CFTC on prediction markets is a “big problem” each regulators are centered on.
“I can absolutely say that the 2 companies can be harmonized greater than ever earlier than, and so we’re assembly as soon as per week to do this with our workers.”
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