the highest rebate and best execution do not go together.

there is a conflict inherent in that pricing schema.

If transparency is the answer, should the government force transparency?

We have had a good hearing today, I think a very constructive hearing, a very illuminating hearing.

Many, including this Senator, question whether the rise of high-speed trading is, overall, a good thing for markets and investors.

Some argue that 30 cents on an order is a tiny, minuscule amount, you have given a very strong answer or response to that.

Who decides whether an exchange or a wholesaler has provided best execution?

And as free of conflict of interests as you possibly can?

Conflicts of interest damage investors and markets--first, by depriving investors of the certainty that brokers are placing the interests of their clients first and foremost.

New technologies should not erase enduring values. Financial markets cannot survive on technology alone.

Now, we looked at your Form 606 quarterly order routing disclosures for the quarter covered in the Battalio paper.

I think we have all heard about a recent survey of equity market participants that suggested that the majority of those surveyed thought that the equity markets were not fair for all participants.

So a best execution committee?

But the answer to the question is different brokers, even with the same clients, can reach different conclusions about the best venue.

I find that to be, frankly, a pretty incredible coincidence.

At least that step ought to be taken.

A lot of other people are insisting on it, and I happen to agree with that, but it is not----

the appearance of a conflict matters.

Because as simple as you can make--to inspire confidence, you would to make the market as simple as you possibly can and as transparent as you possibly can.

And that would hurt regular investors while others may benefit the market?

Has the proliferation of trading venues and order types created opportunities for predatory high-frequency traders to take advantage of investors?

I look at statistics such as the one that I believe you cited, Senator, that two-thirds of Americans had equities in their account not too long ago, maybe a decade ago, and now it is half; that participation in the equities markets is at a…

But would you rather be in a nonconflicted environment?

But do you think the average investor can make a decision on where a broker is going to get best execution?

The conflict of interests that we have discussed contribute to that lack of confidence.