Introducing Broker In The Financial Futures Markets, The Legal System

This paper is the author through rearch our country finance futuresmarket development then wrote. The author centers on the legal matterwhich the IB service to develop will be appear to. Then proposed thelegislation and the law consummate suggestion. The paper divides into fourparts:First, this paper will center on this fact that China domestically todevelop financial futures exchange market, introducts the financial futureselementary knowledge, as basic concept and characteristic. Attempts toinfer it from the nature of financial futures that futures and stock cooperationpattern is the immediately conclusion in our country that to developingdomestic finance futures market, the paper from the finance futures marketown development, the stock market innovation, the futures market expandedand so on three aspects to emphasize the importance of futures and stockcooperation. Solid cooperation both sides were allowed base on talentedperson, fund, perfectly management to realize the superioritysupplementarily, the sharing business place, the technical systerm, thecustomer resources, and the managerial experience, in all aspects. Aider fullanalysis our country's success or failure experience in market of futures andstock, proposed to implements Introducing Broker is called IB. The paper indetailly described the IB service system's necessity and the significance.The author is detailly descripts the IB service institutionalframework, and do a comparison research between USA and Taiwan area.Introducing Broker system is refers securities business introducts owncustomers who are interested in finance futures exchange to Participat init, then get middle introduction commission according it services. At present,our domestic law environment still at the blank condition to the IB service,such as service qualifications, responsibility scope regarding the securitiesbusiness and other's correlation legal matters.Next, this article take American and the our country Taiwan area mature experience as the reference, after in detail introduced these twoexperiences pattern, unified our country domestic market environment aswell as the financial profession development condition has proven take theTaiwan area as the mainland's sample on IB systerm. According to thepresent known China finance futures exchange to the IB service pattemlocalization, domestic is planning that the single transaction provides theconvenience for the investor, securities business not directly contactsinvestor's fund and has the dutyof assistance futures business to inform investor's.Furthermore, in has established the IB service in the domesticfeasibility after the service pattern which possibly implements, the authoracts according to the Chinese finance futures exchange currently to the IBservice authorization, proves it to belong to in middle introduction .thislegal act nature revolved three party, securities company, futures companyand investor. How to protects the legitimate investor's right, how to againsttransaction risk which produces with in the organization interior as well asthe market. In view of the finance promptly development, the authorthrough analyzes the market the realistic transaction condition proposed fiveaspects questions to carry on which organization that will be engaged in theIB service: 1st, the duty of informs the investor to pay guarantee; 2nd, theduty of truthfully informs, the IB department must strictly observe thehonest credit principle; 3rd, the duty of carries on in middle service withevery effort, the organization is engaged in IB to have the most assiduousduty to serve for the investor; 4th, the duty of against risk, securitiescompany to have to establish set of effective isolation mechanisms,separates the futures and the securities service, avoids two services typesoccurring overlapping, and must set up a isolation pattern which is called as"the firewall";5th, the profession prohibition stipulation,this ask the peoplewho is engaged in IB service obey the moral, legal request.Finally, The author will believe, in order to effectively safeguards thefinance futures market the development, implements the IB service systemto have to a cross leap surveillance. Since our country continuously separately surveillance stock makert and commodity makert by ChinaSecurities Regulatory Commission. How breaks through present the legallimit to establishes a new surveillance pattern? This is a key poim of thispaper to research, the author think that full use existing resources toestablish a department in CSRC is a good idea.The paper's goal is through each kind of legal matter thorough carefulresearch and the discussion to which that will carries out the newly financeservice involved, to effectivly avoid any wrong behavior, and making thisservice is effective for the financial future makert. Here many are author'slegislation suggestions, just for development, makes a legal preparation.Perhaps in this paper it had involve the legal matter is small, but, regardingthe market development any possibility existence risk is dangerous, theauthor hoped through own small rearch causes it to be more perfect.