Mar. 31, 2023
Hello SEC, I have the Following comment on the proposed rule above. The practice of Payment for Order Flow (PFOF) has been banned in the UK due to concerns regarding conflict of interest. The US market should also consider a similar ban. Brokers who do not participate in PFOF handle orders differently, resulting in a higher quality of execution. A recent study revealed that Robinhood, which generates approximately 70% of its revenue from PFOF, does not offer statistically significant price improvement compared to exchanges. FINRA's Best Execution guidance is violated, as retail investors who do not use PFOF receive better prices than those who do. Additionally, FINRA is currently evaluating the impact of not charging commissions on member firms' order-routing practices and decisions, and the results of the investigation should be made public. That is why I believe this Rule should be implemented. Thank You