Statement on Retail Options
March 17, 2023
I am concerned by reports of retail investors being unable to exercise options they purchased on Silicon Valley Bank and Signature Bank stock. I am hopeful that broker-dealers and clearing agencies will make efforts to assist retail investors in exercising their options if the investors wish to do so, including by exploring possible cash settlements. In addition, I hope that FINRA and my colleagues at the SEC will move forward with efforts to establish a comprehensive regulatory framework around complex products, including options, which are risky and can expose an investor to sudden and severe losses.
 See, e.g., Brandon Kochkodin, Retail Traders Left Hanging As More Brokers Halt Transactions On Silicon Valley Bank Just As Bets Are Set To Pay Off (Mar. 15, 2023); Elena Popina, Thousands of Stock Options on Failed Banks in Limbo as Expiration Hits (Mar. 17, 2023).
 See Commissioner Allison Herren Lee and Commissioner Caroline Crenshaw, Statement on Complex Exchange-Traded Products (Oct. 4, 2021).