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What Is the Primary Purpose of a “Suitability Assessment” in Institutional Trading?

To ensure that the derivatives products traded are appropriate for the client's financial situation and risk tolerance.
Greeks.Live14.11.25

What Is the Primary Purpose of a “Suitability Assessment” in Institutional Trading?

The Suitability Assessment is a regulatory and internal requirement to ensure that the derivatives products offered or traded are appropriate for the institutional client's financial situation, investment objectives, and risk tolerance. It protects the client from taking on excessive or inappropriate risk.

This also protects the platform and broker from future liability and regulatory fines.

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