Mar. 31, 2023
Hello SEC, here is my comment on the Proposed Rule above. Individual investors may not fully comprehend the intricacies involved in executing trades, and therefore best execution is crucial in trade execution. It is important to offer unambiguous guidance on how to interpret the data in Regulation NMS Rule 605 reports, especially for retail investors. Brokers should comply with their obligation to provide best execution derived from common law agency principles and fiduciary obligations, which needs to become a rule that the SEC can enforce. Conflicted orders should not be part of a Best Execution rule. A best execution rule is necessary to prevent customers from being unaware of revenue arrangements between brokers and subpar trading firms or paying higher transaction prices. Different trading venues offer various prices, and slower execution can lead to missed opportunities. Information leaks and less reliable settlement processes can also delay receipt of proceeds. Recent examples, such as Robinhood's failure to satisfy its best execution obligation, demonstrate the significance of this rule. Quarterly reviews of execution quality would provide transparency and accountability for broker-dealer practices. The proposed Regulation Best Execution would ensure consistently robust best execution practices and provide a more detailed and comprehensive standard for broker-dealers to follow, thereby safeguarding household investors and promoting fair and efficient markets. Thank You