Interesting news from the world of financial markets. Nasdaq is filing an application with the SEC to launch binary options on the CSI 100 index — essentially a simplified version of options trading for retail traders.



The product's concept is simple: binary trading contracts will operate on a "yes or no" basis for major stock indices. The price of each contract ranges from 1 cent to 1 dollar depending on the probability the market assigns to a certain outcome. This is Nasdaq's first experience in this area.

What’s important to note: these instruments will be regulated by the SEC, not the CFTC, like regular event contracts. This is a fundamental difference. Nasdaq proposes listing on its Nasdaq 100 and Nasdaq 100 Mini indices.

Everything currently depends on SEC approval. If they give the green light, this could open a new segment for retail traders seeking simpler tools for binary trading without the complexities of traditional options. We’ll see what the regulator says.
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