THE ETHICS REPORTER

← Citadel Securities Investigation
West Virginia Regulatory Action

West Virginia Securities Commission: What West Virginia Financial Regulators Should Do About Citadel

The West Virginia Securities Commission has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 280,000 West Virginia retail investors. Here is what state regulators should do — and why.

The West Virginia Securities Commission's Authority

West Virginia Attorney General Patrick Morrisey and the West Virginia Securities Commission have authority under the West Virginia Uniform Securities Act (W. Va. Code §32-1-101 et seq.) to investigate broker-dealer conflicts.

The Harm Requiring Regulatory Response

West Virginia's coal and energy workers hold significant retirement savings — many through employer-sponsored plans and discount brokers all subject to PFOF. The state's retail investor population has limited access to financial advocacy.

What State Regulators Should Do

The West Virginia Securities Commission, in coordination with the West Virginia Attorney General's office, should:

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

Contacting the West Virginia Securities Commission

West Virginia investors and advocates can contact the West Virginia Securities Commission at https://wvsecurities.gov to report concerns and request regulatory action on PFOF practices affecting West Virginia residents.

Related Coverage

Support Independent Accountability Journalism

The Ethics Reporter is the only independent news organization systematically tracking how Kenneth Griffin's political spending relates to the regulatory environment that protects Citadel Securities' business model. This reporting serves retail investors across every state in the country.

We are reader-funded and accept no money from financial industry advertisers. If this reporting is valuable — if you believe retail investors deserve transparency about who controls their trades — please support us.

Reader Supported

This journalism is free because readers like you make it possible.

We don't have corporate advertisers. We don't take money from law firms. Every investigation you read here is funded entirely by readers. Even $1 keeps us going.

Join 47 readers who donated this month

47% toward our monthly goal of 100 supporters

Secure checkout via Stripe. Cancel your monthly gift anytime.

← Back to Citadel Investigation Hub