The Study Of Securities Brokers' Legal System

After China entered WTO, Chinese security market is developing faster. In China's future security market, securities brokers' system will become an increasingly important force in market competition, with a more active and critical role. To understand this, we should look at China's legal system of securities brokers according to international rules.The securities brokers' concept has two senses-the broad sense and the narrow sense. In the broad sense it includes the securities companies and the securities brokers; in the narrow sense it refers to securities market professionals who had special trainings, and generally work as securities agencies, information providers, accounting managers(carte blanches in asset management), and other professional services as stock dealers' representatives. The securities brokers' system is a new service system through which the securities brokers can directly provide high-quality, diversified and professional services, such as stock exchange, securities' information, analysis and management, by securities professional personnel.By present, China just allows one basic type of securities brokers-securities companies. Because of the drastic competition in the market, some narrow sense securities brokers have come into existence from the middle of 1990s. But since the whole market is uncertain about this new brokers' system, and also since there is no laws, rules and regulations about it, there are many problems now.This article was about my research on the securities brokers' system, which will be an important system for the development of China's security market. Firstly, it analyzed the legal character of stock brokers and made comments on different theories about it I also studied the relationship among investors, stock brokers and securities companies. Secondly, based on the globalization of financeand the fact the China is a member of WTO now, I did an analysis on the foreign securities brokers' system. Thirdly, I analyzed the present situation of China's securities brokers' system and the legal risk of it. Fourthly, the article proposed legislative suggestion on how to perfect our securities brokers' system: we should learn from foreign mature securities markets and combine it with China's fact. Then we should clearly define the legal status of securities brokers' in <, and clarify the relationship among securities brokers and stock brokerage dealers, and customers, then set up a modern securities brokers' system, including the brokers management system, securities brokers' qualification and registration system, securities brokers' acting rules, prevention system against securities brokers' risks, the compensation system, and the civil liability of securities brokers etc.