Citadel Calls for SEC Oversight on Equity-Linked Event Contracts
Citadel Securities is calling on the SEC and CFTC to maintain oversight of equity-linked event contracts and perpetual derivatives. In a September 9 comment letter, the firm argued 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 new products for trading with minimal oversight. The firm warned that this could lead trading venues to sidestep SEC jurisdiction and circumvent existing regulations.
The company also expressed concern over equity-linked perpetual derivatives, stating they could push trading activity outside the SEC's existing surveillance and investor-protection framework.