The New Jersey Bureau of Securities's Authority
New Jersey Attorney General Matthew Platkin has been active on financial consumer protection. The New Jersey Bureau of Securities has authority under the New Jersey Uniform Securities Law (N.J.S.A. 49:3-47 et seq.) to investigate market maker conflicts.
The Harm Requiring Regulatory Response
New Jersey is home to some of the nation's most sophisticated retail investors — many employed in Wall Street-adjacent industries across the Hudson. These investors deserve better than the opaque PFOF arrangements that benefit Citadel at their expense.
What State Regulators Should Do
The New Jersey Bureau of Securities, Division of Consumer Affairs, in coordination with the New Jersey Attorney General's office, should:
- Open an investigation into whether broker-dealers serving New Jersey 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 Jersey residents
- Contact NASAA to explore multistate coordination
- Issue investor education guidance about PFOF practices and how New Jersey investors can protect themselves
- Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting New Jersey retail investors
Contacting the New Jersey Bureau of Securities
New Jersey investors and advocates can contact the New Jersey Bureau of Securities, Division of Consumer Affairs at https://www.njconsumeraffairs.gov/bos to report concerns and request regulatory action on PFOF practices affecting New Jersey residents.