The need to adequately protect investors has prompted the idea that civil liability of exchange members for damages resulting from violation of exchange rules might be an effective supplement to selfregulation. The scope of civil liability is uncertain, however, because little case law has evolved. Messrs. Wolfson and Russo describe the self-regulatory system, analyze the scant case law dealing with civil liability, and propose a test of liability which focuses on the nature of the rule violated and its relationship to the Securities Exchange Act of 1934. Finally, they set forth several hypothetical examples of the way in which the proposed test should be applied and conclude that invoking civil liability in accordance with this test would significantly increase the protection afforded investors who deal with members of stock exchanges.