Scholarly Articles and Other Contributions
 

Document Type

Article

Publication Date

1980

Abstract

Since its inception in 1972, listed options trading has become a very important source of income for the securities industry. The total volume of transactions has risen dramatically, but so have investor complaints. The author of this article examines the 1979 study of the options markets issued by the SEC staff, notes its principal recommendations, and discusses the need for greater industry self-regulation. The author notes that the SEC is still considering final rule proposals in the options field, and he suggests that the options/securities industry will probably be altered in the following respects: (1) a restructuring of the existing registered representative system; (2) a revision of the way in which suitability determinations are made; (3) a development of more accurate solicitation materials and disclosure documents; and (4) a development of more accurate account statements for investors.

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