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Oregon Regulatory Action

Oregon Division of Financial Regulation: What Oregon Financial Regulators Should Do About Citadel

The Oregon Division of Financial Regulation, Department of Consumer and Business Services has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 780,000 Oregon retail investors. Here is what state regulators should do — and why.

The Oregon Division of Financial Regulation's Authority

Oregon Attorney General Dan Rayfield and the Oregon Division of Financial Regulation have authority under the Oregon Securities Law (ORS Chapter 59) to investigate broker-dealer practices.

The Harm Requiring Regulatory Response

Oregon's tech and progressive community includes many retail investors who believe they are using 'zero-commission' trading — without understanding the PFOF model that funds Citadel Securities through their order flow.

What State Regulators Should Do

The Oregon Division of Financial Regulation, Department of Consumer and Business Services, in coordination with the Oregon Attorney General's office, should:

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

Contacting the Oregon Division of Financial Regulation

Oregon investors and advocates can contact the Oregon Division of Financial Regulation, Department of Consumer and Business Services at https://dfr.oregon.gov to report concerns and request regulatory action on PFOF practices affecting Oregon residents.

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