Citadel Securities · SEC · Crypto Briefing
Citadel Securities calls for SEC oversight of equity-linked event contracts
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
The push comes as both regulators work to clarify the boundaries between swaps and security-based swaps amid the rapid growth of prediction markets.
Key facts
- The firm said in a Sept. 9 comment letter that innovation should not weaken the regulatory framework governing US securities markets
- Citadel Securities also warned that trading venues could rely on the CFTC’s self-certification process to sidestep SEC jurisdiction
- Citadel Securities is pressing the SEC and the CFTC to preserve the SEC’s oversight of equity-linked products in the face of new event contracts and perpetual derivatives
- By comparison, SEC-regulated venues generally face a formal review process that includes public comment and affirmative SEC approval
Summary
Citadel Securities is pressing the SEC and the CFTC to preserve the SEC’s oversight of equity-linked products in the face of new event contracts and perpetual derivatives. The firm said in a Sept. 9 comment letter that innovation should not weaken the regulatory framework governing US securities markets. Citadel Securities raised concerns about the CFTC’s self-certification process, which allows registered trading venues to certify that new products comply with applicable rules and potentially begin trading the following business day. By comparison, SEC-regulated venues generally face a formal review process that includes public comment and affirmative SEC approval.