Nasdaq Plans Prediction-Market Yes-or-No Options on Nasdaq 100

Nasdaq Inc. plans to roll out options contracts that would allow yes-or-no bets on a major stock index, the latest exchange operator to put its own spin on fast-growing prediction markets.

The company wants to list binary options on its flagship Nasdaq 100 Index and the Nasdaq 100 Micro Index, according to a proposed rule change filed with the US Securities and Exchange Commission. The Nasdaq contracts would be priced between 1 cent and $1, reflecting the market’s view of an outcome becoming true, the filing said.

It would be Nasdaq’s first foray into products that mirror prediction markets. The ...