On The Way To Construct Margin Trading Guarantee System Of China

The key to the success of margin trading lies in the adequacy of itsguarantee mechanism. However, the conflict between the guaranteemechanism of margin trading and the existing security laws makes it hardto reach an agreement in how to construct a guarantee mechanism ofmargin trading. The purpose of this paper is to study the trading structureof margin trading and the conflict of its guarantee mechanism with theexisting security laws, to clarify the related disputes, and to construct aguarantee mechanism which can meet the demand for margin trading.This paper is divided into three parts, namely, introduction, body andconclusion.Introduction introduces the topic of this article, the research methodsand innovation.Body parts include four following chapters:Chapterâ… mainly introduces the characteristics of the guaranteemechanism of margin trading and its conflict with the existing securitylaws. There are two contradictions: First, the publicity and specifictechnology problems brought by the liquidity of the collateral; Second, theproblems to streamline the setup process, to maximize the use of collateraland to efficiently realize security right brought by the high efficiencyrequirements of margin trading.Chapter II mainly analyzes the relevant paths to construct margintrading guarantee system. On the basis of in-depth study of the transactionstructure of margin trading, this paper finds that the guarantee mechanismof margin trading is fundamentally different from the existing types of realproperty, and trying to legalize it only by assigning a label to it is difficultto fully comply with the basic principles of the label, or cannot meet the needs of the structure of margin trading.Chapterâ…¢is about the margin trading guarantee mechanism in the relevant legislations. On the basis of the related international legislation on the financial security, this paper believes that we should break the traditional form and content requirements, streamline the setup process, maximize the use of collateral and efficiently realize security right.Chapter IV makes suggestions on establishing separate margin trading guarantee system of China. This paper argues that the fundamental way to construct the guarantee mechanism of margin trading is to construct a separate real security of margin trading on the basis of the international trends of legislation on financial security.Conclusion summarizes the full text, refining the core of this view.