Mar. 31, 2023
The best execution in the market is necessary for trade execution for individual investors who may not understand the complexities involved in choosing how to execute a trade. The SEC needs to provide clear guidance on how to read and interpret the data in Regulation NMS Rule 605 reports, especially for individual investors who may not have a deep understanding of the markets. Brokers also owe their customers a duty of Best Execution derived from common law agency principles and fiduciary obligations, but it needs to become a rule that the SEC can enforce. 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. I am for this rule since it would propose for a much more detailed and comprehensive standard for broker-dealers to follow resulting in consistently robust best execution practices. The proposed Regulation Best Execution is a necessary step in protecting household investors and promoting fair and efficient markets by ensuring that household investors are receiving the best possible execution for their trades.