Citadel Urges SEC to Rein in Trading Venues Over Event Contracts

Citadel Securities has urged the US Securities and Exchange Commission (SEC) to reassert its oversight of event contracts tied to public firms.

In a letter dated September 9, the market maker expressed concerns that trading venues are using CFTC self-certification to circumvent SEC jurisdiction over equity-linked products.

Citadel argued that this process differs from the SEC framework, which requires compliance, public comment, and affirmative approval before trading begins.

The company cited key performance indicator contracts tied to public companies as an example, stating that CFTC-registered designated contract markets have self-certified such products for trading under the CFTC's jurisdiction.

Citadel also asked the SEC to commit to timely review of new product filings and to resolve classification questions on equity-linked event contracts and perpetual derivatives.