Nasdaq Files for ‘Outcome-Related Options’ Product in Bid To Siphon Market Share From Kalshi and Polymarket

The Nasdaq wants to compete with Polymarket and Kalshi.

The stock exchange has filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) to list and trade “Outcome-Related Options” (OROs).

If approved, OROs would entitle buyers to receive a fixed amount based on whether the settlement price of the underlying contract is at, above, or below a predetermined strike price at expiration, according to the Nasdaq filing.

The Nasdaq isn’t the only exchange going to bat against prediction markets: A Wall Street Journal report last month indicated the derivatives exchange Cboe Global Markets has been in talks with retail brokerages to restart “all-or-nothing” options contracts.

The Nasdaq’s OROs would be regulated by the SEC and trade in the range of $0.01 to $1.00, mimicking the structure of prediction market platforms like Polymarket and Kalshi. Predictions market platforms are regulated by the Commodity Futures Trading Commission (CFTC) rather than the SEC, however.

In a hearing with the Senate Banking, Housing, and Urban Affairs Committee last month, SEC Chair Paul Atkins noted that coordinating jurisdiction between his agency and the CFTC on prediction markets is a “huge issue” both regulators are focused on.

“I can surely say that the two agencies will be harmonized more than ever before, and so we’re meeting once a week to do that with our staff.”

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