August 1, 2016
17 CFR 240.10b-10 - Confirmation of transactions.
CFR Title 17 Chapter II Part 240 Subpart A Section 240.10b-10
it appears that the broker should disclose the counterparty to the broker's customer. in addition, the broker should possibly disclose that they get paid by the counterparty under contract arrangements to sell the investor's order to that internalizer. while the broker's customer pays maybe $10, the broker appears to protect the counterparty from disclosure to the customer. in addition, it would be very interesting to find if the broker allows any counterparties additional settlement time and whether the broker gets paid by the counterparty not to settle.