THE ETHICS REPORTER

← Citadel Securities Investigation
Montana Regulatory Action

Montana Commissioner of Securities and Insurance: What Montana Financial Regulators Should Do About Citadel

The Montana Commissioner of Securities and Insurance, Securities Division has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 180,000 Montana retail investors. Here is what state regulators should do — and why.

The Montana Commissioner of Securities and Insurance's Authority

Montana Attorney General Austin Knudsen and the Montana Commissioner of Securities and Insurance have jurisdiction under the Montana Securities Act (MCA §30-10-101 et seq.) to investigate broker-dealer conflicts.

The Harm Requiring Regulatory Response

Montana's rural retail investor population has limited access to financial advice and relies heavily on national discount brokers, all of which route orders through Citadel Securities.

What State Regulators Should Do

The Montana Commissioner of Securities and Insurance, Securities Division, in coordination with the Montana Attorney General's office, should:

  • Open an investigation into whether broker-dealers serving Montana residents are meeting best execution obligations under state securities law
  • Issue a formal inquiry to major PFOF-dependent brokers about their routing arrangements with Citadel Securities and the execution quality they achieve for Montana residents
  • Contact NASAA to explore multistate coordination
  • Issue investor education guidance about PFOF practices and how Montana investors can protect themselves
  • Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting Montana retail investors

Contacting the Montana Commissioner of Securities and Insurance

Montana investors and advocates can contact the Montana Commissioner of Securities and Insurance, Securities Division at https://csi.mt.gov to report concerns and request regulatory action on PFOF practices affecting Montana residents.

Related Coverage

Support Independent Accountability Journalism

The Ethics Reporter is the only independent news organization systematically tracking how Kenneth Griffin's political spending relates to the regulatory environment that protects Citadel Securities' business model. This reporting serves retail investors across every state in the country.

We are reader-funded and accept no money from financial industry advertisers. If this reporting is valuable — if you believe retail investors deserve transparency about who controls their trades — please support us.

Reader Supported

This journalism is free because readers like you make it possible.

We don't have corporate advertisers. We don't take money from law firms. Every investigation you read here is funded entirely by readers. Even $1 keeps us going.

Join 47 readers who donated this month

47% toward our monthly goal of 100 supporters

Secure checkout via Stripe. Cancel your monthly gift anytime.

← Back to Citadel Investigation Hub