Mar. 22, 2023
I am writing to you today to express my concerns about Payment for Order Flow (PFOF). I believe that PFOF hurts individual investors by: Reducing competition. PFOF creates a situation where a few large firms have a monopoly on the flow of retail orders. This reduces competition, which can lead to higher prices and lower quality service for retail investors. Increasing conflicts of interest. PFOF creates a situation where brokers have a financial incentive to route retail orders to certain market makers, even if those market makers are not offering the best prices. This can lead to brokers putting their own interests ahead of the interests of their clients. Eroding trust. PFOF can erode trust in the stock market by making it seem like the market is rigged in favor of large institutions. This can make it more difficult for retail investors to participate in the market. I urge you to take action to address these concerns. I believe that a ban on PFOF would be the best way to protect individual investors. However, I would also be open to other proposals that would mitigate the risks of PFOF. Thank you for your time and consideration. Sincerely, Michael Sayer