Feb. 23, 2023
February 23, 2023
As a retail investor, the proposed amendment to the regulation governing the national market system is incredibly important for protecting our interests. The proposed rule is designed to promote competition, which is crucial for ensuring that individual investors have access to fair and transparent markets.
The proposed rule would prohibit restricted competition trading centers from internally executing certain orders of individual investors at a price unless the orders are first exposed to competition at that price in a qualified auction operated by an open competition trading center. This means that our orders will be exposed to competition before being executed, ensuring that we get the best possible price for our trades. This is incredibly important because it ensures that we are not being taken advantage of by trading centers that have restricted competition.
Additionally, the proposed rule includes limited exceptions to this general prohibition. This means that there are certain circumstances where restricted competition trading centers can internally execute certain orders of individual investors without exposing them to competition. However, these exceptions are limited, and are designed to ensure that our interests are protected.
The proposed amendment also adds new defined terms to the regulation governing the NMS. This is important because it ensures that all market participants have a common understanding of the terms used in the new rule. This will result in a more transparent market where all participants can have a clear understanding of the rules and regulations governing the market.
Overall, the proposed amendment to the regulation governing the national market system is incredibly important for retail investors like us. It will ensure that our orders are exposed to competition, resulting in fair and transparent markets. The addition of new defined terms will also ensure that all market participants have a common understanding of the new rule. This will result in a more transparent market where all participants can have a clear understanding of the rules and regulations governing the market.