Citadel Securities urges SEC to regulate event contracts, challenging CFTC self-certification

Citadel Securities has sent a letter to the SEC and CFTC demanding that the SEC assert primary regulatory authority over event contracts tied to U.S. public companies. The firm argues that trading venues are exploiting the CFTC's self-certification mechanism to bypass the SEC's more rigorous review process. This move targets prediction markets like Kalshi and OG.com, potentially raising compliance hurdles for products linked to corporate financial metrics and insider trading risks.