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Wall Street firms under investigation for treatment of retail investors

US authorities have sent subpoenas to several firms in connection with probe into the handling of retail clients’ orders

Wall Street
Wall Street

Federal and state authorities are investigating whether Wall Street firms that handle millions of orders annually for retail clients have lived up to their obligation to provide the best possible treatment for those investors, according to people familiar with the matter.

The Justice Department's civil division has sent subpoenas to several firms including Citadel Securities, the market-making business owned by investor Kenneth Griffin, and KCG Holdings in connection with the probe, these people said.

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