Mar. 19, 2023
Dear SEC, I am writing in support of the proposed rule concerning the disclosure of order execution information (File No. S7-29-22). The enforcement of transparent and ethical practices in the financial markets is vital to protect individual investors and promote fairness. Best execution is crucial for individual investors who may not fully comprehend the complexities of trade execution. It is essential to provide clear guidance on reading and interpreting the data in Regulation NMS Rule 605 reports, specifically for retail investors who may lack extensive knowledge of the markets. Brokers have a duty of best execution derived from common law agency principles and fiduciary obligations. However, it is necessary for the SEC to establish and enforce a rule to ensure compliance. Conflicted orders should not be part of a best execution rule, as they may result in customers paying higher transaction prices or being unaware of revenue arrangements between brokers and subpar trading firms. Past incidents, such as Robinhood's misleading statements and Citadel's unfavorable pricing for customer trades, highlight the need for more stringent regulations. Imposing quarterly reviews of execution quality would enhance transparency and accountability for broker-dealers' practices. The proposed rule provides a comprehensive standard for broker-dealers to follow, leading to consistently robust best execution practices. Implementing Regulation Best Execution is a vital step in safeguarding household investors and fostering fair and efficient markets by ensuring optimal execution for their trades. In conclusion, I urge the SEC to implement the proposed rule on the disclosure of order execution information to protect individual investors and promote transparency and fairness in the financial markets. Thank you for considering my input on this crucial matter. Sincerely, Robert Alexander Waelder from Gainesville Florida