Mar. 19, 2023
Dear fellow investors and market participants, I am writing to express my strong support for the proposed Disclosure of Order Execution Information rule. Best execution is of utmost importance in trade execution, particularly for individual investors who may not understand the complexities involved in choosing how to execute a trade. Brokers owe their customers a duty of Best Execution derived from common law agency principals and fiduciary obligations, and it is essential that this duty becomes a rule that the SEC can enforce. Conflicted orders have no place in a Best Execution rule. Unfortunately, recent events have shown that some brokers have not been transparent with their customers about the execution quality of their trades. For example, Robinhood made misleading statements and did not disclose payments received for routing trades to specific firms. Similarly, Citadel paid the SEC $22.6 million in 2017 to settle best execution charges for executing customer trades at less favorable pricing when a better price was available. The proposed rule would provide a more detailed and comprehensive standard for broker-dealers to follow, resulting in consistently robust best execution practices. This would help to protect household investors and promote fair and efficient markets by ensuring that household investors are receiving the best possible execution for their trades. Overall, the proposed Disclosure of Order Execution Information rule is a necessary step in promoting transparency and fairness in our financial markets. I urge the SEC to prioritize the interests of individual investors and take strong action to enforce best execution practices. By doing so, we can help to create a financial system that is equitable, transparent, and sustainable for all. Thank you, Cassie Wendland