Legal Research On Margin Requirement

Margin Requirement System has been widely adopted in security markets by many countries and regions and has developed in different patterns. Numerous market entities have been involved in Margin Requirement and thus the latter has complex legal relationship, in which guarantee legal relationship has its peculiar characteristics. In the patterns of Japan or Taiwan, securities finance companies which have played a role in linking the capital markets and fund markets together, are set up in order to make it more convenient for the authorities to supervise Margin Requirement. Because of speculation in Margin Requirement System, the supervisor has taken diversified measures to prevent its negative effects, and made regulations and laws to deal with the illegal behavior and civil disputes arising from Margin Requirement. The dissertation has discussed some main legal issues in Margin Requirement System and put forward some corresponding suggestions and provided some useful reference for establishing a similar system of securities system in China.