Feb. 23, 2023
Standardizing and sharing a broker's best execution policy allows retail traders like me to know whether or not I'm comfortable trading securities with certain brokers due to their history with certain Market Makers. If a Market Maker is routinely indicated to fail to deliver certain securities, it would be important for me to know what my broker's policy is in relation to this fraudulent behavior and what punishment or infractions should be placed on those mismanaged Market Makers. An SEC rule mandating brokers to routinely state their dedication and consequences for Market Makers that fail to uphold their best execution standards would ensure retail traders have avenues to submit complaints and receive assurances that their securities are protected. PFOF directly negates a broker's ability to ensure best execution by routing orders off-exchange at the behest of a Market Maker's shady practices.