Citadel Securities Urges SEC Oversight for Certain Prediction Market Contracts

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Odaily News: Citadel Securities wrote to regulators stating that prediction market contracts tied to key performance indicators of public companies should be classified as security-based swaps and regulated by the U.S. Securities and Exchange Commission (SEC) rather than the Commodity Futures Trading Commission (CFTC). Citadel Securities said that if such contracts continue to be regulated by the CFTC, it could lead to a split in regulatory authority and market fragmentation, and called for adjustments to the existing regulatory framework.

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