Mar. 31, 2023
Dear SEC, I am writing to express my support for the proposed Regulation Best Execution rule. As an individual investor, I believe that best execution is crucial in trade execution, especially for those who may not understand the complexities involved in choosing how to execute a trade. The proposed rule would provide a more detailed and comprehensive standard for broker-dealers to follow, resulting in consistently robust best execution practices. I also urge the SEC to provide clear guidance on how to read and interpret the data in Regulation NMS Rule 605 reports, especially for retail investors who may not have a deep understanding of the markets. Without the best execution rule, customers may not be aware of revenue arrangements between brokers and subpar trading firms or that they may be paying higher transaction prices. Brokers owe their customers a duty of Best Execution derived from common law agency principles and fiduciary obligations, but it needs to become a rule that the SEC can enforce. Conflicted orders don't belong in a Best Execution rule. Quarterly reviews of execution quality would provide transparency and accountability for the broker-dealers' practices. In conclusion, the proposed Regulation Best Execution is a necessary step in protecting household investors and promoting fair and efficient markets by ensuring that household investors are receiving the best possible execution for their trades. Thank you for your attention to this matter. Sincerely, A household investor