Nasdaq Rolls Out Simple Yes-No Bets on Index Performance Options
Published Date: 3/16/2026
Notice
Summary
Nasdaq MRX wants to start trading a new kind of option called Outcome-Related Options (OROs), which are simple yes-or-no bets based on the Nasdaq-100 and Nasdaq-100 Micro indexes. This change affects traders who like quick, clear results and could open fresh ways to invest or hedge risks. The new rules are up for review now, so keep an eye out for when these options might hit the market and how they could impact your trading game.
Analyzed Economic Effects
9 provisions identified: 7 benefits, 1 costs, 1 mixed.
New Binary Options Listed on MRX
Nasdaq MRX filed to list and trade Outcome-Related Options (OROs) on the Nasdaq-100 (NDX) and Nasdaq-100 Micro (XND) indexes. The SEC is accepting comments through April 6, 2026, and will decide within 45 days of the Federal Register notice.
Position Limits and Reporting Thresholds
OROs would have a position limit of 25,000 contracts on the same side of the market and position limits for OROs are not aggregated with other options. The minimum position that must be reported is 200 contracts.
Fixed Payout and Contract Multiplier Specified
The proposed rules state a contract multiplier of $100 and set an 'exercise settlement amount' for OROs at $100. The filing also describes that a call or put ORO would pay $1.00 per contract at expiration if it finishes in-the-money.
Very Low Premiums and Penny Increments
ORO bids and offers must be in U.S. dollars with a premium range of $0.01 to $1.00 and a minimum trading increment of $0.01. The Exchange proposes the $0.01 increment even though some NDX options trade in $0.05 or $0.10 increments.
Automatic Exercise and P.M. Settlement
OROs will be P.M.-settled (exercise results in cash delivery the business day after expiration) and will automatically be exercised at expiration if the settlement value meets the in/at/out-of-the-money condition. OROs are not subject to certain Options 4A exercise limits.
Multiple Expiration Types Allowed
The Exchange may list ORO series with weekly expirations, end-of-month expirations, standard monthly expirations (up to 12), and LEAPS that expire from 12 to 60 months. New series in weekly or EOM expirations may be added up to and including the expiration date.
Broker Suitability and Risk Disclosure Required
Broker-dealers must provide customers who trade OROs with the Options Disclosure Document (ODD) and have a reasonable basis that a recommended transaction is suitable under FINRA Rule 2111 and FINRA Rule 2360(b)(16)(A).
Obvious Error Price Adjustment Cap
If an ORO trade is adjusted as an 'Obvious Error,' the adjusted price (including any Non-Customer adjustment) shall not exceed the applicable exercise settlement amount for OROs, which the filing characterizes as $1.
Clearing by OCC and Exchange Surveillance
Trades in OROs would clear centrally through The Options Clearing Corporation (OCC), and Nasdaq MRX intends to apply its existing real-time and post-trade surveillance and FINRA/ISG arrangements to OROs. The Exchange also states OPRA and its systems have capacity for the additional traffic.
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Key Dates
Department and Agencies
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