The Research On The Legal System Of Margin Trading In Our Country

Margin trading is a foreign-developed stock market trading system, originated in the United States, is a securities credit transactions, including two forms of margin trading and short sell.Margin trading mechanism is to improve market liquidity, market volatility buffer and reasonable market price discovery, hedging, and an important way to create profit and means improving stock market mechanism effectively, promoting innovation of financial products and optimizing the allocation of resources. The trading mechanism and the operation of its unique features are very popular among the investors because of its special mechanism and great attraction to investors ; however, it can lead to speculative and other negative effects. China had ever an explicit prohibition in the laws and regulations about the implementation of margin trading business.Chinese security market has developed over ten years. In 2006, the new "Securities Law" and relevant regulations were decreed. Margin purchases and short sales in our country has been just operated on March 31, 2010.However, to accelerate China's securities market is still in transition period, some deep-seated problems still hamper the further rapid development of China's securities market. In view of the margin trading in China has just started, the legislation and judicial practice are facing many problems. This paper analyses the current margin in the business of the full implementation of conflict of laws that still exist such as system design issues and gaps, for example, the convergence and rights conflict in "Trust Law" and "Security Law". Through improving the design of the system and perfecting the system, ensure the healthy development of margin trading.