In view of the risks related in such structures, it is felt that the use of such products, if  BIS Review 24/2010  9  considered at all, may be liked to crystallized exposures. Also, there should not be any leverage in the structures. 52.
As we debate on the issue of cost reduction structures, we may also discuss issues relating to writing of stand-alone options. Given the market conditions and issues relating to suitability and appropriateness, would it be timely to allow writing of standalone covered options? Alternatively, instead of allowing writing of standalone covered options, should we consider allowing cost efficient structures with safeguards?