SIFMA Executive Vice President Snook Delivers Remarks Regarding Listed Options

At SIFMA's Listed Options Symposium, the organization's Executive Vice President Randy Snook spoke about the importance of listed options and the challenges that market structure imposes on these financial products.

Mr. Snook explained that "SIFMA has long called for a holistic and comprehensive review of market structure" and that options should be part of the review. He noted that certain ideas are working well in the listed options market and could be applied to other markets.

He voiced support for the Office of the Comptroller of the Currency's initiative to adopt the principles-based risk control standards that were announced last month, and added that the SEC should finalize and implement its proposed catastrophic errors rules.

Mr. Snook warned that listed options markets may be impacted negatively by a new capital requirement for risk-weighted assets. According to Mr. Snook, this rule ultimately could require clearing members who demand "significantly" more margin from market-makers to clear their business.

See: Randy Snook's Remarks.