# Nasdaq Outcome-Related Options

**Type:** Binary options product  
**Operator:** Nasdaq  
**Regulator:** SEC  
**Status:** Approved (May 2026)  
**Domain:** Securities derivatives  

## Overview

Cash-settled binary options tied to major market indices, approved by the SEC with accelerated approval finding them "consistent with securities law." These are outcome-linked instruments that settle based on whether an index reaches a specified level.

## Significance

SEC approval of binary options on financial indices occurs simultaneously with CFTC's five-state litigation campaign defending prediction market platforms. This creates cross-agency validation of outcome-linked instruments when tied to securities (SEC jurisdiction) while such instruments remain contested when tied to events (CFTC jurisdiction). May create precedent for futarchy governance markets that settle on token prices rather than external events.

## Timeline

- **2026-05-05** — SEC granted accelerated approval for Nasdaq to list cash-settled Outcome-Related Options on major indices

## Sources

- Lowenstein Sandler FinTech Five, May 5 2026