The Selection On The Legal System Of The Guarantee For The Financing And Securities Loan

Financing and securities loan, as the hotspot in the present securities market, has been playing the significant role in activating the market, altering the unilateral market in the stock market, and boosting the financial system, etc. However simultaneously, the financial leverage effect existed in it herein would be prone to bringing about the amplification of the risk. It is such the topic scratched by this essay that how to take precautions against the risk by designing the guarantee of financingand securities loan, so as to leave this innovative financial system fluent. The essay includes five aspects. The first and second parts introduce the brief analysis on the financing and securities loan business, drawing the conclusion that such guarantee system on ideal level shall have some characters. The third and forth parts show the discussion on whether the up-to-date system would be in accordance with the requirements of the business practices and whether it go against the actual laws, starting from the designing of the financing and securities loan system by the securities community and the supervision departments presently. The fifth part of this essay indicates the contents of the legislative approach directed by functions that the present rights and obligations designed by the laws and regulation shall be surveyed, the attempt shall be made to take advantage of the existing resources of the legal system, in order to promote the guarantee system which complies with the exchanging requirements of the security community, as well as the fundamental principles of the civil and commercial laws, giving impetus to reform with the minimum cost.