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Delaware State Action

Delaware Attorney General Kathy Jennings: The Case for Investigating Citadel Securities

Kathy Jennings, the Delaware Attorney General, has the authority and — given the documented harms to an estimated 180,000 Delaware retail investors — the obligation to investigate Citadel Securities' payment for order flow practices under Delaware law.

The AG's Authority in Delaware

Delaware Attorney General Kathy Jennings, whose office already incorporates securities divisions, could leverage Delaware's unique position as the corporate home of Citadel's legal entities to demand greater accountability.

The Harm to Delaware Investors

Delaware is the legal home of most American corporations—including many financial firms. Delaware retail investors may have unique legal standing under Delaware corporate law to challenge broker-dealer conflicts of interest given the state's sophisticated chancery court system.

Kathy Jennings has an estimated 180,000 Delaware retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Delaware's chief law enforcement officer will protect the financial interests of Delaware residents when federal regulators have failed to act.

The Griffin Political Context

Delaware Attorney General Kathy Jennings should be aware of the documented political investment Kenneth Griffin has made in Delaware. Griffin has given millions through national Republican organizations to the Republican National Committee and national Republican organizations. 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 Delaware consumer protection law by creating undisclosed conflicts of interest
  • Whether Delaware broker-dealers are meeting best execution obligations under state securities law
  • Whether Citadel Securities' disclosures to Delaware retail investors adequately describe the PFOF relationship
  • Whether a multistate investigation coordinated through NASAA would be appropriate

Contact Kathy Jennings

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

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