Jan. 10, 2023
January 10, 2023 I think that the SEC should have a rule (or rules) in place that establish a best execution standard. However, I am not sure that this rule does a good job of establishing that standard. In particular, payment for order flow is, by its design, incompatible with best execution, as it provides certain counterparties more information than others, which will often have a negative effect on best execution. Payment for order flow is currently ubiquitous in the market and it is actively harming retail trades. The SEC should go further than the current proposal and establish rules that set best execution standards on a order-by-order basis. In addition, I would like to see substantial mandatory fines put in place for brokers who violate best execution rules.