Securities Settlement Risk Controls And Management In China

Security settlement system (SSSs) are a critical component of the infrastructure of financial markets. Securities settlement and payment risks are viewed as a source of systemic disturbances to securities markets. After the 1989's 'Black Monday' in New York Stock Exchange, global financial organizations began to pay their attention on the strategies of market risk management. Inl989, Group Thirty presented its institutional recommendations for securities settlement and payment risk controls, which achieved widespread support and adoption almost immediately. Since then, the recommendations have been updated and developed by many financial organizations, and significantly became the standards to promote improvement in the safety and efficiency of SSSs.Whenever compared with some coutries'SSSs, some characteristics as well as flaws are exposed in China's. More attention on technique systems and less attention on institutional schemes may be one of the reasons. National debt buy-back incident in recent years to securities trader, securities registration and settlement organization and even impact to the financial market, that is of our country security clearing risk that is it build store in the direct consequence that the defect brings to control.Principal risk exposes entire principal value of transaction at risk, and maybe the stem of systemic risk. Security clearing risk that this text discusses points the risk of the principal mainly This text consider: The securities, fund accept the subject inconsistently; The securities, fund are handed in and received and keep in the time difference, but has not set up corresponding guarantee mechanism; The security clearing company accepts rivals numerously; lack the essential debt-credit mechanism, above all that is the systematic principal risk of security clearing of our country controls the subject matter faced to.D VP is the most effective mechanism to eliminate principal risks of stick precaution that G-30 organization recommends. DVP is an effective mechanism to eliminateprincipal risk. After core of the institution scheme for securities settlement and payment risk controls, and all nations should manage to achieve it in accordance with their practices.Direct against the flaws in China's insitution for securities settlement risk controls, the text has proposed some pertinence improvement proposing and methods: Solve securities trader's problem of overdrawing, Solve the problem that the securities and fund settlement time difference, Set up the bank assuring system, Offer essential financing to raise stocks mechanism, etc.Finally, the thinking of pointing out future construction of system of security settlement of our country of this text should be, on the premise of not changing current settlement mode, operate the best mode standard according to the security settlement system that the international organization praises highly, perfect and optimize our settlement system, put forward the method to really realize DVP in our country.This text is divided into five parts. First part, Introduction. Second part, introduce the risk that the security settlement system and security settlement system exist. The third part, Combine the theory, has analyzed the main risk that the company of security settlement of our country faces, probe into the concrete form of expression in our country of settlement risk, Probe into the concrete form of expression in our country of settlement risk. The fifth part, Probe into the risk management institutional improvement of security settlement of our country and concrete scheme perfected.