Mar. 26, 2023
To whom it may concern, The proposed Regulation Best Execution is a critical step in protecting investors and promoting fair and efficient markets. Best execution is vital in trade execution. Brokers owe their customers a duty of best execution derived from common law agency principles and fiduciary obligations. However, this duty needs to become a rule that the SEC can enforce to ensure transparency and accountability for broker-dealers' practices. Conflicted orders do not belong in a best execution rule, as such orders can negatively impact execution quality and prevent individual investors from receiving the best possible execution for their trades. Without the best execution rule, customers may not be aware of revenue arrangements between brokers and subpar trading firms or that they may be paying higher transaction prices. Different trading venues may offer different prices, and slower execution can lead to missed opportunities. Information leaks can inhibit a successful transaction, and less reliable settlement processes can delay receipt of proceeds. It is essential to provide clear guidance on how to read and interpret the data in Regulation NMS Rule 605 reports, especially for retail investors who may not have a deep understanding of the markets. Quarterly reviews of execution quality would provide transparency and accountability for broker-dealers' practices, which would protect individual investors. The proposed rule would provide a more detailed and comprehensive standard for broker-dealers to follow, resulting in consistently robust best execution practices. By ensuring that all investors receive the best possible execution for their trades, the proposed Regulation Best Execution would promote fair and efficient markets while protecting individual investors. Thank you for your time, Tristan Henderson