Mar. 06, 2023
March 6, 2023 Best execution for household investors is a joke in the U.S. market. I support this proposal because it takes a baby step toward improving best execution. Gary Gensler said 90-95% of retail orders don't even hit the lit exchange. this needs to change. There is no reason for household investors' orders not to hit lit exchanges ... except to enrich those who control where and when trades take place. I recently read a letter on which Citadel, the NYSE, and Schwab collaborated to address this proposal. They don't like the proposal because it hurts their bottom line. And they claim to have \"retail\" investors' best interests at heart. They do not. It is beyond patronizing when they use language like that--acting as if they speak for household investors. I, for one, do not want them to represent me. Here's the thing: the 401k accounts of household investors lost 20% in 2022. Meanwhile, Citadel and Schwab posted massive gains. From whom do they get their ill-gotten gains? Regular folks' 401ks. How do they do it? Poor execution, dark pools, internalizing household investors' orders (Citadel, in its MM capacity), and other general grifting and cheating (slapping the ask, wash trading, etc.). Oligarchs run this country and we may still have a chance to change that fact.