The New Hampshire Bureau of Securities Regulation's Authority
New Hampshire Attorney General John Formella and the Bureau of Securities Regulation have authority under the New Hampshire Uniform Securities Act (RSA 421-B) to investigate broker-dealer practices.
The Harm Requiring Regulatory Response
New Hampshire's 'Live Free or Die' ethos extends to its financial markets — but retail investors deserve transparency about how their orders are routed and monetized by Citadel Securities.
What State Regulators Should Do
The New Hampshire Bureau of Securities Regulation, Department of State, in coordination with the New Hampshire Attorney General's office, should:
- Open an investigation into whether broker-dealers serving New Hampshire 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 New Hampshire residents
- Contact NASAA to explore multistate coordination
- Issue investor education guidance about PFOF practices and how New Hampshire investors can protect themselves
- Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting New Hampshire retail investors
Contacting the New Hampshire Bureau of Securities Regulation
New Hampshire investors and advocates can contact the New Hampshire Bureau of Securities Regulation, Department of State at https://www.sos.nh.gov/securities-regulation to report concerns and request regulatory action on PFOF practices affecting New Hampshire residents.