Mar. 24, 2023
Dear Sir/Madam, I support this rule. There are individual investors who may not be deeply educated in the complexities of choosing how to execute a trade, but their best interests must still be served. Brokers have a duty to deliver Best Execution, which is based on common law agency principles and fiduciary obligations, and this must be enforced by the SEC. Unfortunately, customers may not be aware of revenue arrangements between brokers and subpar trading firms, or that they could be paying higher transaction prices without the Best Execution rule in place. It is essential that investors receive clear guidance on how to read and interpret the data in Regulation NMS Rule 605 reports. This would enable them to be informed of different trading venues and their prices, as well as the risks of slower execution, information leaks and unreliable settlement processes. To further protect investors, the SEC has proposed a Regulation Best Execution. This more detailed and comprehensive standard would provide transparency and accountability for broker-dealers, and ensure that consistently robust best execution practices are in place. Quarterly reviews of execution quality would also provide extra assurance that customers are getting the best deal on their trades. Thank you for your consideration, ZK.