Citadel Securities · SEC · The Block
Citadel urges SEC to assert oversight of event contracts tied to public firms
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
Citadel Securities urged the Securities and Exchange Commission and Commodity Futures Trading Commission to reaffirm SEC oversight of products tied to U.S. public companies and their securities.
Key facts
- Citadel Securities urged the Securities and Exchange Commission and Commodity Futures Trading Commission to reaffirm SEC oversight of products tied to U.S. public companies and their securities
- New products should succeed on their individual merits,” Berger wrote, “rather than by taking advantage of distinctions between the SEC and CFTC regulatory frameworks
- Under CFTC rules, venues can self-certify new products and begin trading as soon as the next business day without soliciting public comment, Citadel said
- He said KPI-linked binary options should be treated as securities under federal laws
Summary
In a Sept. 9 letter responding to a joint request for comment from the agencies, the market maker said trading venues should not be able to use CFTC self-certification to circumvent SEC jurisdiction over equity-linked products. Under CFTC rules, venues can self-certify new products and begin trading as soon as the next business day without soliciting public comment, Citadel said. "A trading venue should not be able to effectively choose its regulator for an equity-linked product based on its own unilateral characterization of such product," Stephen John Berger, Citadel's global head of government and regulatory policy, wrote in the letter. Berger pointed to key performance indicator contracts tied to public companies as an example, saying certain CFTC-registered designated contract markets have self-certified such products for trading under the CFTC’s jurisdiction.