Study On Transnational Securities Margin Transaction

Margin transaction is a securities exchange manner usually adopted in the international securities market, which includes two forms, i.e., transaction in financing and securities lending. Margin Transaction plays an important role in promoting the prosperity of securities market and guiding investor's capital flow, and thus exerts an enormous impact on a harmonious development of both currency market and capital market. Ever since 1970s when transnational securities margin transaction has came into existed, it has experienced profound development through this decade. This thesis intends to analyze the relevant legal issues which may come up in transnational securities margin transaction.The subject part of this thesis includes four chapters as follows:The first Chapter begins with the general situation of margin transaction. The first section clarifies the concept of margin transaction, pointing out that the margin transaction involved in this thesis is in its narrow sense, having the meaning of transaction in financing and securities lending. The second section analyzes the essential characteristics as well as the necessities of existence of margin transaction. The third section reviews the history of transnational securities margin transaction in short. The last section makes clear the scope of the transnational securities margin transaction involved in this thesis.The second chapter focuses on the various legal issues of transnational securities margin transaction, starting with legal relation, and followed by legal principle of transnational securities margin transaction, and then, this chapter goes to expatiate on the legal characters of margin transaction contract.Chapter three is a major part of this thesis. This chapter deals with the analysis on the legal issues which may come up in transnational securities margin transaction that shall be regulated and bound by the law, including the way to cope with securities right and interest, the conflict with corporation governance, the problems on law applicable and the control mode of legal risk. The forth chapter, based on the above analysis, discussed the development and legislation of margin transaction in China. Through the study on the transaction mode in USA, Taiwan and Japan, the second section of this chapter suggests the selection of transaction mode for Chinese securities market, and then takes the chance to point out the barriers of margin transaction and provide some personal opinions for the development of margin transaction in China.The conclusion makes a summarization and educes the conclusion of the whole thesis.