Mar. 31, 2023
To whom it may concern, I am in support of this proposal. If the SEC aims to uphold a fair and competitive market, orders should be routed through a public auction where everyone will have an equal opportunity to fill the order. Payment for order flow allows for a monopolistic nature of the market and creates an unfair advantage in favor of those who profit from PFOF. In 2012. the United kingdom launched an investigation looking into the banning of PFOF. Sviatoslav Rosov, PhD, wrote this paper for the CFA Institute in 2016; here is the abstract: We investigate the 2012 clarification that banned the use of payment for order flow arrangements in the United Kingdom. We find that over the period 2010–2014, the proportion of retail-sized trades executing at the best quoted price increased from around 65% to more than 90%, suggesting that the integrity of the order book has improved. We argue that quote integrity can be maintained without trade-through protection. Additionally, I would like to make a suggestion: The cost of a speeding ticket is determined by how fast the driver is going. Therefore, I would think that it's fair to scale the cost of the fine with the amount of money that was made from the law-breaking activity. Thank you, Investor