The concept of regulatory systemic risk – a long-term imbalance, resulting from the misalignment between regulatory initiatives and market realities, that impacts multiple areas of the regulatory framework – is developed in the context of US securities regulation. The discussion offers two...

This case describes the situation faced by the SEC in implementing Rule 19c-5, which allowed multiple trading of listed options. It provides details on the history of the options market and asks the student to make a recommendation as to whether Rule 19c-5 should be implemented on schedule