Regardless of controversy and accusations ranging from playing to insider buying and selling, prediction markets like Kalshi and Polymarket have surged in recognition lately. Now, even Nasdaq desires to dip its toes into event-based buying and selling.
Nasdaq is looking for approval from the U.S. Securities and Change Fee (SEC) to launch new outcome-based choices tied to main indexes, in accordance to a regulatory filing submitted Monday.
The change plans to roll out what it calls “outcome-related choices” linked to the Nasdaq-100 Index, which tracks the 100 largest non-financial corporations listed on the change, together with Apple, Nvidia, Meta, Amazon, and Tesla. Nasdaq is additionally looking for approval to supply the contracts on the Nasdaq-100 Micro, a smaller index designed for smaller trades.
These binary choices would enable merchants to place yes-or-no bets on particular outcomes, akin to, whether or not the Nasdaq-100 will shut above or under a sure degree by a selected date.
The contracts can be priced between $0.01 and $1, with the value reflecting the market’s estimate of the likelihood of the consequence. If the occasion happens, the contract pays out. If it doesn’t, it turns into nugatory.
Nasdaq did not instantly reply to a request for remark from Gizmodo.
The transfer comes as prediction markets have change into mainstream regardless of intense scrutiny. Platforms like Kalshi and Polymarket have been round since 2018 however actually began gaining consideration after precisely forecasting main occasions akin to the outcomes of the 2024 presidential election and 2025 New York Metropolis mayoral race.
Main media establishments are additionally partnering with these marketplaces, lending them further credibility. CNN teamed up with Kalshi final 12 months, whereas the Golden Globes partnered with Polymarket earlier this 12 months. Most not too long ago, the Related Press introduced in the present day that it’ll present Kalshi with information and race requires national and state elections.
In the meantime, critics of those marketplaces have raised considerations over the potential of insider buying and selling, particularly the place bets involving main world occasions are involved, akin to the downfall of former Venezuelan President Nicolas Maduro or the U.S. strikes on Iran.
Whereas each corporations publicly discourage insider buying and selling, Polymarket brazenly encourages these with distinctive information to leverage their experience on the market.
“In the event you’re an professional on a sure matter, Polymarket is your alternative to revenue from buying and selling primarily based on your information, whereas bettering the market’s accuracy,” the firm’s user guide says.
Disclaimer: This article is sourced from external platforms. OverBeta has not independently verified the information. Readers are advised to verify details before relying on them.
