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Wyoming Regulatory Action

Wyoming Secretary of State, Securities Division: What Wyoming Financial Regulators Should Do About Citadel

The Wyoming Secretary of State, Securities Division has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 100,000 Wyoming retail investors. Here is what state regulators should do — and why.

The Wyoming Secretary of State, Securities Division's Authority

Wyoming Attorney General Bridget Hill and the Wyoming Secretary of State's Securities Division have authority under the Wyoming Uniform Securities Act (W.S. §17-4-101 et seq.) to investigate broker-dealer practices.

The Harm Requiring Regulatory Response

Wyoming's energy sector workers and ranchers hold retirement savings through discount brokers subject to PFOF practices. The state's minimal regulation ethos has not been extended to protecting retail investors from market maker conflicts.

What State Regulators Should Do

The Wyoming Secretary of State, Securities Division, in coordination with the Wyoming Attorney General's office, should:

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

Contacting the Wyoming Secretary of State, Securities Division

Wyoming investors and advocates can contact the Wyoming Secretary of State, Securities Division at https://sos.wyo.gov/Securities to report concerns and request regulatory action on PFOF practices affecting Wyoming residents.

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