PTG Responds to FINRA Request for Comment on Best Execution Guidance
Sep 25, 2026
In a letter filed today, PTG supports FINRA’s preliminary conclusion that Rule 5310’s principles-based best execution framework remains sound, but argues that the related guidance should be modernized, particularly if the SEC rescinds Regulation NMS Rules 611 and 610(e). Because those changes could significantly affect venue connectivity, order routing, displayed quotations, and the role of the NBBO, PTG urges FINRA to coordinate closely with the SEC and solicit public comment before adopting materially revised guidance. PTG also recommends an ongoing best-practices program featuring periodic thematic reviews, anonymized examples of effective and problematic conduct, and recurring industry consultation.
In a post-Rule 611 environment, PTG believes firms should make venue and routing decisions based on genuine execution-quality factors such as price, liquidity, reliability, speed, fill likelihood, and total cost. Displayed quotations should be treated as meaningful only when they are genuinely accessible, without discriminatory restrictions or intentional delays. PTG supports retaining the NBBO as the primary execution-quality benchmark, provided quotes contributing to it remain accessible and reliable, and favors allowing firms to consider all-in transaction costs, fee tiers, customer objectives, and order-flow characteristics. Properly designed, tested, and regularly reviewed smart-order-routing systems should also be able to satisfy Rule 5310’s review requirements.
More broadly, PTG favors flexible, tailored guidance over prescriptive requirements. The letter calls for iterative best practices for extended-hours trading; clearer treatment of held and not-held orders; separate guidance for listed options that recognizes their distinct market structure; continued flexibility for fixed-income and institutional orders; and centralized access to expanded Rule 605 disclosures. It also argues that tokenized securities should remain subject to the same best execution principles and quotation-accessibility standards as conventional securities.