Mar. 14, 2023
March 14, 2023 Dear Ms. Countryman, As a household investor, I would like to express my gratitude for your efforts to promote competition and transparency in the market. Thank you for providing an opportunity to comment on the proposed changes. The recommended enhancements are a significant overhaul to the U.S. equity market structure, possibly one of the most substantial changes since the implementation of Regulation NMS in 2005. The Commission has proposed changes to Rule 605 of Regulation NMS to provide more comprehensive information about broker executions. In 2000, the SEC proposed SEC Rules 11Ac1-5 and 11Ac1-6, which are now known as SEC Rules 605 and 606. The rules were implemented to address increased competition and fragmentation in the market and ensure the practicability of Best Execution of all investor orders, including limit orders, regardless of their origin. Currently, brokers are required to file 606 reports quarterly. However, in December 2022, FINRA and the SEC issued risk alerts regarding non-compliance with the 606 reports. FINRA's report identified several compliance issues, such as firms providing inaccurate information in the quarterly report on order routing, incomplete disclosures, and inadequate descriptions of material aspects of their relationships with disclosed venues. This included incorrect identification of execution venues, incomplete descriptions of PFOF arrangements, and inadequate disclosure of tiered pricing arrangements. Given the non-compliance issues with 606 reports, there is concern that brokers may also fail to comply with the new 605 reports, which would not benefit retail investors. The usefulness of the 605 reports depends on the accuracy of the data they contain. Thank you for your attention to these matters.