Citadel Securities told regulators that prediction market contracts linked to publicly-traded companies should be overseen by the Securities and Exchange Commission (SEC) instead of the Commodity Futures Trading Commission (CFTC). In a letter Wednesday, the firm argued that contracts tied to 'key performance indicators' are security-based swaps that fall under the SEC's purview. Citadel warned that oversight by the CFTC risks market fragmentation.

The statement comes amid a push by prediction markets like Polymarket for 24/7 trading.