The AG's Authority in Alabama

Alabama Attorney General Steve Marshall could join a multistate investigation into payment for order flow practices, and the Alabama Securities Commission has authority under the Alabama Securities Act of 1959 to investigate broker-dealer conflicts of interest affecting Alabama residents.

The Harm to Alabama Investors

Alabama retail investors—many of whom rely on discount brokers for retirement savings—have their orders routed through Citadel Securities without disclosure. The spread capture on Alabama-originating orders is estimated in the millions annually.

Steve Marshall has an estimated 800,000 Alabama retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Alabama's chief law enforcement officer will protect the financial interests of Alabama residents when federal regulators have failed to act.

The Griffin Political Context

Alabama Attorney General Steve Marshall should be aware of the documented political investment Kenneth Griffin has made in Alabama. Griffin has given more than $2 million in identifiable political donations affecting Alabama's federal delegation to Senator Tommy Tuberville and Republican Senate super PACs that fund Alabama candidates. This political context does not determine what the AG should do — but it is relevant to understanding why federal and state regulators have been slow to act, and why an independent state investigation would be meaningful.

What the AG Should Investigate

• Whether PFOF arrangements between major discount brokers and Citadel Securities violate Alabama consumer protection law by creating undisclosed conflicts of interest
• Whether Alabama broker-dealers are meeting best execution obligations under state securities law
• Whether Citadel Securities' disclosures to Alabama retail investors adequately describe the PFOF relationship
• Whether a multistate investigation coordinated through NASAA would be appropriate

Contact Steve Marshall

Alabama residents can contact the Attorney General's office at https://www.alabamaag.gov to request investigation of PFOF-related broker-dealer practices affecting Alabama investors.