South Dakota State Action

South Dakota Attorney General Marty Jackley: The Case for Investigating Citadel Securities

Marty Jackley, the South Dakota Attorney General, has the authority and — given the documented harms to an estimated 155,000 South Dakota retail investors — the obligation to investigate Citadel Securities' payment for order flow practices under South Dakota law.

The AG's Authority in South Dakota

South Dakota Attorney General Marty Jackley and the South Dakota Division of Securities have authority under the South Dakota Uniform Securities Act (S.D.C.L. Ch. 47-31B) to investigate broker-dealer practices.

The Harm to South Dakota Investors

South Dakota is known for favorable financial industry laws — but its retail investor population deserves protection from undisclosed PFOF practices just as much as investors in more regulated states.

Marty Jackley has an estimated 155,000 South Dakota retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether South Dakota's chief law enforcement officer will protect the financial interests of South Dakota residents when federal regulators have failed to act.

The Griffin Political Context

South Dakota Attorney General Marty Jackley should be aware of the documented political investment Kenneth Griffin has made in South Dakota. Griffin has given contributions to Governor Noem and national Republican organizations to Governor Kristi Noem and the Republican Governors Association. This political context does not determine what the AG should do — but it is relevant to understanding why federal and state regulators have been slow to act, and why an independent state investigation would be meaningful.

What the AG Should Investigate

Whether PFOF arrangements between major discount brokers and Citadel Securities violate South Dakota consumer protection law by creating undisclosed conflicts of interest
Whether South Dakota broker-dealers are meeting best execution obligations under state securities law
Whether Citadel Securities' disclosures to South Dakota retail investors adequately describe the PFOF relationship
Whether a multistate investigation coordinated through NASAA would be appropriate

Contact Marty Jackley

South Dakota residents can contact the Attorney General's office at https://atg.sd.gov to request investigation of PFOF-related broker-dealer practices affecting South Dakota investors.

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