While the Internet is rapidly making online trading “ubiquitous,” it may “still be premature” for extensive rulemaking in this area, Securities and Exchange Commissioner Laura Unger concluded in her long-awaited online trading report that was released Nov. 22.

In fact, Unger seems to have carefully skirted what has been developing into the most contentious online trading issue: suitability, a broker-dealer’s obligation to recommend only those investments that are suitable for a customer. The report, titled “On-Line Brokerage: Keeping Apace of Cyberspace,” noted that pinpointing what constitutes a recommendation in an online environment can be difficult.

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