Citadel Securities Says KPI-Linked Prediction Market Contracts Should Be Regulated as Security-Based Swaps

Citadel Securities wrote to regulators saying prediction market contracts tied to public companies' key performance indicators should be defined as security-based swaps and regulated by the U.S. Securities and Exchange Commission rather than the Commodity Futures Trading Commission. According to Odaily, the firm said continued CFTC oversight could split regulatory authority and fragment the market, and it called for changes to the current regulatory framework.