Mar. 27, 2023
March 27, 2023 I fully support the SEC’s proposal Regulation Best Execution. The SEC should take action to reduce conflicts of interest by increasing transparency in the routing of orders by brokers and wholesalers, with investors having access to the best priced quotations available in the National Market System (NMS). The proposed changes to Alternative Trading Systems (ATS) rules promote better alignment with regulatory frameworks for exchanges and would be beneficial for individual household investors. Alternative Trading Systems (ATS are SEC-regulated electronic trading platforms that match buyers and sellers of stocks) should submit detailed disclosures about their operations, including how they manage conflicts of interest, how they operate their order routing practices, and how they handle customer orders. This would make it easier for investors to understand how ATS operate and how their orders are executed. ATS should provide detailed information about the operation of their systems to the SEC, including data on the execution of orders, order routing practices, and information about the use of dark pools. This would improve the SEC's ability to oversee ATS and ensure compliance with regulatory requirements. ATS should operate in a manner that is consistent with the broader regulatory structure of the securities markets, which would benefit individual investors by promoting fair and transparent trading practices. Household investors support any initiatives aimed at identifying and preventing fraudulent practices that undermine the credibility, integrity, and functionality of American markets. Competition in the marketplace is necessary to regulate markets better and barriers to competition, such as the conflicted nature of PFOF, should be removed. Thank you for reading.