The Securities Brokerage Legal Nature Of The Relationship Preliminary

Conducting research into the securities broker system and supervising and policing brokers' daily business are essential for the protection of investors' interest and the safe running of securities institutions. However, this system has yet to be developed in China's legal system, and as a result, it is necessary to close explore this issue and conduct comparative legal research.I would like to illuminate the following three issues in this thesis:First, what is the nature of securities broker transaction? Current laws and regulations and judicial practices tend to place it into agency transaction, while the dominant opinion in the academic community is that the it belongs to broker transaction. This sort of dispute makes it difficult to define the rights and duties of securities institutions. This paper examines the complete course of securities transaction and compares major academic views of both legal families and draw conclusions as follows: Under China's current aggregation transaction system, the securities institutions act as agencies rather than brokers for the investors, and furthermore, they are special agencies carrying guarantee obligations for investors. I also analyzed the two conflicting theories in both legal families addressing this issue. My second issue is concerning the specific duties of securities institutions in securities transactions on the basis of the analysis of the first issue.My third issue is about institutions' involvement as buyers or sellers in the transactions in which they also take the role of agencies in today's securities market in China. As I formulated above, institutions are the agencies for investors, and according to agency laws and regulations, agencies are forbidden to conduct as buyers or sellers in the transactions with investors. What I explain in this section is that the status quo of the current aggregation transaction system is not conflicted with the nature of the laws and regulations above and does not break the obligations of agencies.After I explored these issues, I offered advice on law-making in regulating agency and securities transactions.