Folio Investments Inc.

02/27/2026: From at least January 2017 to the present, Folio failed to conduct reasonable regular and rigorous reviews of execution quality. During this period, Folio routed its customer orders to two market centers that paid the firm for that order flow. In 2022, Folio began routing a substantial portion of its orders to another market center, which was a firm affiliate. The firm failed to compare the quality of executions it obtained from its order routing and execution arrangements to the quality of executions it could have obtained from competing markets. Additionally, in reviewing the execution quality provided by its existing routing venues, the firm reviewed price improvement, but did not consider other relevant execution quality factors. The firm’s price improvement review was also unreasonable because it did not reasonably consider differences in order types or sizes. As a result, Folio violated FINRA Rules 5310(a), 5310 Supplementary Material .09 (Rule 5310.09), and 2010. During this same period, Folio also ...

Reference 2017056222301finra.orgdata-portal.finra.org