Mar. 30, 2023
Hello, hopefully fellow actual human American reading this,
The proposed changes to ATS rules and the SEC's focus on increasing transparency in order routing by brokers and wholesalers are in line with the broader goal of promoting fair and transparent trading practices, which would ultimately benefit individual investors. The SEC would have better oversight and ensure compliance with regulatory requirements by requiring ATS to submit detailed disclosures about their operations, establish written policies and procedures to prevent fraudulent practices, and provide data on the execution of orders and order routing practices.
Furthermore, implementing a variable minimum pricing increment model for both quoting and trading of NMS stocks would promote fair pricing across trading venues and create a level playing field for all investors, ultimately benefiting household investors. The estimated savings for retail investors, ranging from $1.12 billion to $2.35 billion, underscore the importance of competition in regulating markets and removing barriers to competition, such as the conflicted nature of PFOF.
To further reduce conflicts of interest and promote fair and transparent trading practices, the SEC should implement a cap on the high commissions or fees brokers may charge in lieu of PFOF. Additionally, the SEC should continue to identify and prevent fraudulent practices that undermine the credibility, integrity, and functionality of American markets, as such initiatives are widely supported by household investors.
Overall, the proposed changes and initiatives by the SEC to increase transparency, reduce conflicts of interest, and promote fair and transparent trading practices align with the interests of household investors and are crucial for creating a competitive market structure that benefits investors and encourages transparency.
Thank you for your time,
Kyle Thornton, a real person living in Florida who wants a fair market and is typing this on his keyboard with his actual, human fingers