The US Securities and Exchange Commission (SEC) proposed Regulation Best Execution (Proposal or Proposed Regulation Best Execution) under the Securities and Exchange Act of 1934 (Exchange Act) to enhance the existing regulatory framework around best execution for brokers, dealers, government securities brokers, government securities dealers, and municipal securities dealers (collectively, Broker Dealers). The Proposal was released December 14, 2022, alongside three other proposals covering a wide range of market structure issues in the equity markets (Equity Market Proposals).

Although Proposed Regulation Best Execution would apply to a Broker-Dealer’s execution of all types of securities—including digital asset securities—the data and additional requirements that would result from the Equity Market Proposals (if adopted) will factor heavily into how a Broker-Dealer will meet its best execution obligations under the Proposal with respect to equity transactions.