Derivative's Suitability

Resumo

SUMMARY: 1. Introduction — 2. The nature of derivatives; 2.1 Types of derivatives; 2.1.1 Basie classification; 2.1.2 Trading classification; 2.1.3 Application classification; 2.2 The legal status of derivatives — 3. Current rules and solutions for derivatives suitability; 3.1 Securities laws; 3.1.1 Self-regulatory organizations rules; 3.2 Commodities rules; 3.3 The common law approach; 3.4 Banking rules; 3.5 The written agreement between Bankers Trust and the Federal Reserve; 3.6 The derivative's industry voluntary standard for the sale of derivatives — 4. Conclusion.