Citadel Securities Pushes SEC to Oversee Products Tied to Public Company Shares

Citadel Securities is pushing back on a regulatory shortcut that lets trading platforms launch new financial products tied to public companies as soon as the next business day without public comment, under CFTC rules, according to The Block. Citadel argues platforms should not be able to choose their regulator simply by changing how a product is described.
The market maker specifically flagged yes-or-no bets on company performance, warning that insiders could know results, or how they will be reported, before other market participants. Citadel is calling for such contracts to fall under securities rules, with faster SEC reviews and clearer regulations for other share-linked products.