Broker-Dealer Marketing of Options

Overview

The sale of options has long been subject to a specialized regulatory regime. See the general topic page on Securities Options. The bulk of this regime is intended for the protection of retail investors; e.g., the requirement that broker-dealers collect additional suitability information as to investors buying and selling options, and then make a determination that an investor is "options-qualified." However, other aspects of the options regulatory regime are intended to be protective of the securities markets, including a limitation on the size of positions that options investors may acquire through registered broker-dealers and requirement that broker-dealers submit "Large Option Position Reports" (better known as "LOPR Reporting") to FINRA. See the topic page titled Large Option Position Reporting,

mark.highman@cwt.com's picture
Contributor Organization 
Contributor Title 
Senior Attorney
Steven.Lofchie@cwt.com's picture
Contributor Organization 
Contributor Title 
Partner

Find

 
Find: 

FINRA Rules

Developments

Regulatory Assistance

Enforcement