December 8, 2017
December 8, 2017
Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549
Re: SEC Proposed Rule for Disclosure of Order Handling Information: Release No. 34-78-309 File No. S7-14-16
To Whom It May Concern:
I appreciate the opportunity to provide comments on the Securities and Exchange Commissions proposed amendments for Disclosure of Order Handling Information: Release No. 34-78-309 File No. S7-14-16. The regulation of the markets is vital to the proper functioning and efficiency of trading activity. Proposing rules about transparency ensures that there is confidence in the market place.
Under SECs rule 606, every broker or dealer shall make publicly available for each calendar quarter a report on its routing of non-directed orders in NMS securities during that quarter. In other words, brokers or dealers are required to provide information on the percentages of trades sent to specific exchanges. However, this rule does not require the disclosure of other vital information, such as the number of shares exchanged and details on the quality of the execution price.
Although this rule deems moderately effective, I believe the SEC should require brokers or dealers to disclose detailed order routing reports on a monthly basis for each particular stock traded. This modification will improve transparency in the markets, as retail investors will have a better idea on order flow and the quality at which prices are executed. That way, investors will be able to make better decisions, as the improved transparency narrows the gap in broker activity.
University of Notre Dame Class of 2018