Mar. 31, 2023
Good evening, The concept of best execution is crucial for individual investors who may not understand how to execute a trade. Clear guidance on how to read and interpret the data in Regulation NMS Rule 605 reports is necessary, especially for retail investors who may not have a deep understanding of the markets. Brokers owe their customers a duty of Best Execution, but it needs to become a rule that the SEC can enforce. Conflicted orders do not belong in a Best Execution rule. 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. Several firms, including Robinhood and Citadel, have faced best execution charges from the SEC. The proposed Regulation Best Execution would provide a more detailed and comprehensive standard for broker-dealers to follow, resulting in consistently robust best execution practices. Quarterly reviews of execution quality would provide transparency and accountability for the broker-dealers' practices. The proposed rule would provide 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, Shaun