Mar. 31, 2023
To whom it may concern, I am in complete support of this rule as a household investor, and believe it will make the US stock market a more equitable and fair place to invest. I am a foreign investor based in the UK with a very keen interest in US companies who lead globally in their domains. The current state of the market is flawed, and rules like the order competition rule are key to ensuring the integrity, credibility and functioning of the american markets. My reflections are as follows: When executing trades, it is crucial to prioritize best execution, especially for individual investors who may not comprehend the intricacies of the decision-making process. It is vital to furnish clear guidance on how to comprehend and analyze data in Regulation NMS Rule 605 reports, particularly for retail investors who may lack an in-depth understanding of the markets. Brokers must fulfill their duty of best execution, which is founded on customary law agency principles and fiduciary obligations. However, it should be transformed into a rule that can be enforced by the SEC. The inclusion of conflicted orders in a best execution rule is not appropriate. The absence of a best execution rule can lead to customers being oblivious to revenue arrangements between brokers and inferior trading firms, or that they are paying higher transaction fees. Varied trading venues may propose different prices, which could result in missed opportunities if execution is slow. Leaks in information can impede successful transactions, and less reliable settlement processes can delay receipt of proceeds. Sincerely, Daniel Powell