E*Trade Financial Corp. (ETFC) shares fell, heading for the biggest drop since April, as the online brokerage said regulators were looking into how two of its units routed orders. E*Trade slid 3.8 percent to $14.56 at 10:54 a.m. New York time. The Financial Industry Regulatory Authority told E*Trade on July 11 that it is examining the order routing practices of E*Trade Securities LLC and G1 Execution Services LLC, according to the company’s quarterly report filed yesterday. The company said on July 24 that it plans to sell G1 Execution, months after disclosing that it had found “shortcomings” in how it measured whether trades were struck at the best prices. In yesterday’s filing, E*Trade said it last year completed a review of order handling practices and pricing for trades between E*Trade Securities and G1 Execution, also known as G1X. More on Bloomberg here.
