The AG's Authority in Washington
Washington Attorney General Nick Brown and the Washington DFI Securities Division have authority under the Washington Securities Act (RCW Chapter 21.20) to investigate broker-dealer practices. Washington has historically been among the more active states on securities enforcement.
The Harm to Washington Investors
Washington's tech sector — Amazon, Microsoft, Boeing employees — represents some of the nation's most active retail investors. These sophisticated investors are entitled to best execution and transparent order routing — not undisclosed PFOF arrangements.
Nick Brown has an estimated 1.5 million Washington retail investors — concentrated in the Seattle tech corridor as potential complainants. This is not an abstract regulatory question — it is a matter of whether Washington's chief law enforcement officer will protect the financial interests of Washington residents when federal regulators have failed to act.
The Griffin Political Context
Washington Attorney General Nick Brown should be aware of the documented political investment Kenneth Griffin has made in Washington. Griffin has given millions through national Republican organizations investing in competitive Washington races to national Republican committees targeting Washington's competitive House and Senate seats. 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 Washington consumer protection law by creating undisclosed conflicts of interest
- Whether Washington broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Washington retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Nick Brown
Washington residents can contact the Attorney General's office at https://www.atg.wa.gov to request investigation of PFOF-related broker-dealer practices affecting Washington investors.