Citadel Securities Urges SEC To Take Oversight Of KPI-Linked Wagers

07:51 PM EDT, 09/09/2026 (MT Newswires) -- Citadel Securities urged the Securities and Exchange Commission and Commodity Futures Trading Commission in a letter Wednesday to reaffirm that the SEC is the primary regulator of products linked to US public companies and their securities. The firm said binary options tied to company key performance indicators are securities or security-based swaps under federal law, placing them under SEC jurisdiction, even as certain CFTC-regulated exchanges have self-certified similar contracts as CFTC-regulated swaps. Citadel Securities said trading venues should not be able to choose their regulator through unilateral self-certification, warning that CFTC's process allows new products to begin trading without public comment or affirmative regulatory approval, unlike the SEC's review process. The firm also flagged classification concerns around equity-linked perpetual derivatives, including on pre-IPO companies, and said the commissions should resolve these jurisdictional questions rather than leaving trading venues to decide.