Subject: Comment Letter for File Numbers S7-30-22 and S7-32-22 Regulations NMS and Best Execution
From: A concerned investor
Affiliation:

Mar. 27, 2023

  


Dear Sir/Madam, 


I am writing to provide my comments on the proposed amendments to Regulations NMS and Best Execution (File Numbers S7-30-22 and S7-32-22), which aim to enhance the quality and transparency of market data and promote best execution practices. 


Firstly, I support the proposed changes to Regulation NMS, particularly the requirement for consolidated market data to be provided free of charge to the public. This would benefit all market participants by promoting transparency and reducing costs for investors. I also support the proposal to update the definition of "protected bid or offer" to reflect modern market practices. 


Secondly, I appreciate the SEC's efforts to enhance the best execution obligations of broker-dealers. The proposed amendments would require broker-dealers to take into account additional factors when determining the best execution of customer orders, such as the quality of market data and the nature of the market. This could improve execution quality and reduce costs for investors. 


However, I am concerned about the potential impact of the proposed changes on smaller broker-dealers, who may not have the resources to implement the necessary systems and processes to comply with the new requirements. Therefore, I suggest that the SEC consider providing guidance and support to help smaller firms comply with the new rules. 


Furthermore, I urge the SEC to carefully monitor the impact of the proposed changes on market quality and ensure that they do not have unintended consequences. The SEC should also consider the potential impact of the proposed changes on retail investors, who may be particularly sensitive to changes in execution quality and costs. 


In conclusion, I support the SEC's efforts to enhance market transparency and promote best execution practices. However, I urge the SEC to carefully consider the potential impact of the proposed changes on smaller broker-dealers and retail investors, and to provide guidance and support to help firms comply with the new rules. 


Thank you for your attention to this matter. 


Sincerely, 


A concerned investor