Dec. 18, 2022
December 18, 2022
Subject: Best Execution Comments on S7-32-22
From: Higinio Jr. Sustaita
Sun. Dec. 18, 2022
Briefly, For the retail investor, the problem with Profit For order flow, the brokerage firms are routing orders to a particular market maker solely for its benefit, and not the retail investors.
It's imperceivable, If a broker-dealer offers unrestrained trading, therefore, they could be making their capital through Profit For order Flow and not offering retail orders the best execution.
As a consequence, retail investors cannot monitor execution on their own, without the best execution rule.
As a result, insufficiency of best execution leads to slower execution, missed opportunities, Information leaks, front-running, and tailgating can interfere with the ability to achieve retail investors' transactions successfully.
Thank you, for the opportunity to comment on a significant matter.