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Oklahoma Regulatory Action

Oklahoma Department of Securities: What Oklahoma Financial Regulators Should Do About Citadel

The Oklahoma Department of Securities has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 650,000 Oklahoma retail investors. Here is what state regulators should do — and why.

The Oklahoma Department of Securities's Authority

Oklahoma Attorney General Gentner Drummond and the Oklahoma Department of Securities have authority under the Oklahoma Uniform Securities Act (71 O.S. §1-101 et seq.) to investigate broker-dealer conflicts.

The Harm Requiring Regulatory Response

Oklahoma's energy sector workers and small businesses hold retirement savings through discount brokers subject to PFOF practices. The state has limited financial consumer protection infrastructure.

What State Regulators Should Do

The Oklahoma Department of Securities, in coordination with the Oklahoma Attorney General's office, should:

  • Open an investigation into whether broker-dealers serving Oklahoma 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 Oklahoma residents
  • Contact NASAA to explore multistate coordination
  • Issue investor education guidance about PFOF practices and how Oklahoma investors can protect themselves
  • Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting Oklahoma retail investors

Contacting the Oklahoma Department of Securities

Oklahoma investors and advocates can contact the Oklahoma Department of Securities at https://www.securities.ok.gov to report concerns and request regulatory action on PFOF practices affecting Oklahoma residents.

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