Tyler Baeza Discharged By Merrill Lynch Over Alleged Discretionary Trading

Investors may have suffered losses connected to Tyler Joseph Baeza (CRD: 7658918), a securities broker in Los Angeles, California, based on disclosures in Financial Industry Regulatory Authority (FINRA) BrokerCheck. Baeza worked for Merrill Lynch from January 2023 through July 2026. Here’s a closer look at the disclosure and the rules governing broker discretion.

Merrill Lynch Alleged Tyler Baeza Used Time And Price Discretion In ETF Trading

Merrill Lynch discharged Baeza on June 3, 2026. The firm alleged that Baeza used time and price discretion while trading an exchange-traded fund (ETF) in the account of a Merrill Lynch customer.

Understanding Discretionary Trading And Written Authorization

Discretionary trading generally means a broker or financial advisor makes trades for a client without obtaining approval before each transaction. FINRA Rule 3260 generally requires the client to authorize discretionary trading in writing and the brokerage firm to accept the account in writing.

Time and price discretion can be handled differently when a client has already placed an order for a specific amount of a particular security. In that case, the broker may generally choose when or at what price to execute the order during that business day without separate prior written authorization. Extending that authority beyond the business day requires written instructions from the client. Usually, trading without the client's permission means unauthorized trading.

The broker must also note any use of time or price discretion on the order ticket. Together, these rules clarify which decisions brokers can make in a client's account and when requirements apply for written authorization or other records.

Exploring Recovery Options For Losses Involving Tyler Baeza

If you believe you lost money because of Tyler Baeza, you can contact Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about potentially recovering your investment losses. The firm has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Baeza and the brokerage firms he worked for deny allegations of sales practice violations.