Research On Guarantee System Of China's Margin Trading

Margin trading, also known as credit transactions, is an important part of the securities market. Both as a speculative and investment, high risk and high yield securities trading, major world security markets are as the establishment of formal institutional arrangement. In China, margin trading experienced from banning to solution, and in March 31,2010, it was the first official trading. Margin smoothly, which is China's securities market is an important sign of maturity. In margin transactions, the guarantee mechanism is the core part, and the design of our current security model creatively introduces alienation guaranty, which conflicts with the legal system in China, brought a lot of legal difficulties and practical obstacles. Therefore, to build a guarantee system consistent with our practice has become a priority; there is need for our further research.This paper is divided into four parts:The first part introduces the basic theory of margin trading, including the concept of margin trading, characteristics and legal relationship, clear that guarantee of the legal relationship is the core of margin trading. The second part is the existing guarantee mechanisms of our margin trading, to understand our current guarantee system and to analyze the system in order to clear the existing guarantee system has many legal difficulties and institutional barriers. The third section describes the major countries and regions'margin trading guarantee system, including the United States, Japan and Taiwan, through a comparative analysis, these provides a reference design for our margin guarantee system. The fourth part is the ideas for perfection of guarantee mechanism, including having an alienation guaranty model, account pledge mode and the maximum pledge mode, and according to the actual situation in China, that China should establish a system based on the maximum pledge margin transaction guarantee mechanism.