Mar. 3, 2023
March 3, 2023 I am a household investor. In regards to proposal No. 34-96496, Regulation Best Execution, I am in support of the recommended policies put forth by the SEC. While the given explanations and assurances of broker-dealers that conduct business in the US give confidence in retail and individuals for managing their market orders for them, said brokers seem to operate under their own discretion in terms of how retail orders are routed, from the outside looking in. Having policies that require hand-written reference as to how best execution is achieved will not only provide more transparency for people or agencies in terms of how trades are accomplished, but this gives potential investors more information when it comes to deciding between brokers for entrusting their orders with. This, paired with mandatory reviews and reports of their customer transactions, will encourage broker-dealers to constantly evaluate these execution methods, and let governing bodies act with more understanding on the effectiveness and quality of their transactions. Over the past few years, more investors have been involving themselves more in the practices of bodies trading on their behalf, following significant market events. This has resulted in more questioning to how orders are routed, and more crucially how investments are held and utilized by brokers, the answers to which have direct and undeniable impact on the confidence of retail in the trading market. Entities such as the Depository Trust, conducting business with little to no oversight by governing groups or even the public, discourages those wishing for more clarity in conductance. In fact, I believe that the major control over share trading that the DTCC has is one of the few reasons the entity is able to do business as a 'black box' of sorts with few to no alternatives for companies to have their shares distributed, there is no need for them to explain their inner-workings, positions, etc. By pushing for more transparency into the practices of broker-dealers, household investors h ave more information to work with, and governing bodies can better reflect on their practices and tie this to their success.