The Legal Predicament Of Financing Margin Trading Behavior And Resolve The Path

With the Shanghai and Shenzhen Stock Exchange launched margin transaction pilot in March 31,2010, margin transaction went onto the stage from the behind of the scene. And efficiency is the value of the system of margin transaction. But as an "import", the system of margin transaction is in contradiction with our legal system. If margin transaction wants to become a stable system to be fixed down and achieve its final value, the contradiction with our legal system must be solved.I studied the system arrangement of margin transaction and analysis the contradictions between the margin transaction and our legal system in the norm analysis method, comparative analysis method and data analysis method. I tried to find the legal path to resolve the conflict by discovering the background of legislation and comparing the related systems overeas.The margin transaction introduced the transferguaranty creatively, but this is conflict with the principles of our law. The scholars of our country have presented the standpoints of the maximum pledge and the pledge of accounts, but they are difficult to resolve the conflict. From the aspect of the background of legislation and the nature of transferguaranty, we will find the path to eliminate the confliction of the guarantee system of margin transaction.The design of trust system in margin transaction did not fully follow the principles of Trust Law, so there exists the conflicts. Recognizing the transferguaranty in our legal system is the only way to resolve the conflict.The set and regulation of initial margin ratio is not only to control the risks of margin transaction, but also to be an important tool for macro-control. Stock Exchanges exercise this power will hinder the play of macro-control functions. In my opinion, the power of setting and regulating the margin transaction should be replaced by the People's Bank of China to exercise.The rules of bond and interest rate securities in margin trading are no longer confined to institutions, but also the banking system. Especially after the establishment of refinancing system, it is much closer relationship with the banking industry. The supervision of the security authorities lonely apparently unable to manage the margin transaction system effectively. We shall establish a security, banking and other Multi-sectoral co-management of regulation.