Listen up moon gang another one got caught deutsche bank securities, fine, two milli over best execution issues right out of the gate, i'm sure you're having some sort of emotional response, best execution issues. That's what us the apps, have been talking about all, along with the payment for order flow, which we know is low quality, execution, piss, poor quality execution, some would say, and then your other response, which might prompt a little bit of anger, is wait. They were only fine two million and i have to admit yeah. I feel the same way.

The fine seems very, very small, but that seems to be the going trend with fines. Is that it's more of a speeding ticket? But i want to get into a little bit more of the specifics of the fact that yeah it does relate to the exact thing that we've been talking about is poor quality execution, which is exactly what you get if you're, using the likes of robin hood or Weeble, the financial industry regulatory authority also known as finra, says that the broker dealer failed to revamp how it routed certain orders, even after its own best execution committee, found significantly lower fill rates in its super x trading system compared to other routing methods right away. You should see more red flags, but like we, they were messing with routing and we're talking about routing direct routing, or is it just going to be routed right to a market maker that type of thing and then we're going to be getting into what super x Is but this is right up our alley of some of the things that we've really been harking on. Finra says it has fine deutsche bank 2 million over allegations that it failed to seek best execution for clients? I guess it's just another one to add to our litany of wall street institutions that do not give their clients the best execution and mainly they care about making themselves more money.

The duty to seek best execution for customer orders is a fundamental obligation of any broker dealer that buys or sells securities on behalf of customers. You'd think so, but it doesn't seem like they really follow through on that duty. We will continue to pursue disciplinary action against firms that fail to use reasonable diligence to execute customer transactions so that the price is as favorable as possible under prevailing market conditions. You would think that high quality execution in an efficient manner on the lit exchange or any lit exchange, i should say, would be the most reasonable way to do it, but hey who am i so there allegedly routed some customer orders through its trading system.

So this is a particular trading system of how they decided known as super x with an inherent delay when the orders were routed to exchanges through its smart order router. So basically, what they're saying is that the smart order, router thinner according to finra, allegedly, was dumb af. The alleged delay resulted in potentially lower fill rates, the percentage of order executed at the intended time, price and size. The firm's best execution committee found that the fill rates in super x more like dumb af from orders routed by the smart order.

Router were between 12 and 32 percent, while the fill rates on the orders routed to exchanges were above 90 check this out. So their order router was getting an execution between 12 and 32, which is horrifically low, while orders uh routed to exchanges i.e lit exchanges above 90. crazy, deutsche bank securities allegedly lacked a supervisory system reasonably designed to comply with its best execution obligation and didn't adequately disclose Details on trading rebates once again, trading rebates, inducements incentives, just another, weird way to basically say the same concept as payment for word to flow, not the exact same thing, but this is exactly what mr lauer was talking about: inducements incentives, it's really hampering the price discovery. Competition and efficiency of lit exchanges coming back to rebates, inducements incentives, people being paid off in one way or another to route particular orders, and in this particular case the super x was just awful fills bank.

Of course, uh securities consented to a center and to pay a fine without admitting or denying the findings according to the letter of acceptance. This is what you're going to see all the time. If you look up any big wall street place when they get centered and have to pay fine, and they always do it without admitting or denying the findings they're like we'll just give you this money because to them 2 million ain't, nothing! Oh okay! You caught us doing something that, if i had to best probably made them more than two million like okay cool, we take all of our profit, we'll take two million off of it. We're still net profitable cool, see you later sec, see you later finra.

It's been great doing business with you. It seems like that is the prevailing. I guess issue symptom really case that we're seeing time and time again of the clearly understaffed sec and finra. Remember from the interview that the gary gensler john stewart interview that there's a gofundme for coffee, it's a very like under resourced entity, so even when they somehow pull together the resources to find people doing the things they shouldn't be doing, we end up hitting them with A fine and what's crazy about this, is you might be asking yourself: where do these fines go? They they don't even go really back to the people who were affected by it.

They end up going to the treasury uh, it's a wild wild thing, but hey i'm at least going to look at the silver lining here and point out the fact that someone got caught for poor quality execution issues, that's a step in the right direction. We have to take our wins where we can, because a lot of little wins end up in one big massive win. So does this whole story just came out today leave a little bit to be desired. 100.

I'm right there with you, but it's better than nothing but of course, would love to get your thoughts in a comment below on all this 2 million just 2 million crazy crazy, a little bit of a speeding ticket a little bit of a road bump. If you will you.