Research Law System Of IB Business Investors’ Protection

With the launch of stock index futures in2010, Chinese futures market step into new phase, crescent investors start to learn and join into futures trading. A new upsurge comes up among securities companies of the futures firm acquisition and introducing qualification application, as their realization for the shortage of their customer service capability. Business disputes come along with the business increasing of securities companies and futures firms, which caused lots of loss to the disadvantaged investors. How to protect the investors with law was highlight to a significant place. To protect the investors’rights, this paper proposed some recommendations on IB (Introducing Broker) business from legal aspect.This paper was introduced in five parts as following. At first, the introduction gave an overview of China futures market, and explained the necessity of brokers IB business, with the comparison of Chinese and aboard law on IB business. Then the first chapter built a foundation of whole paper with the concept defining and characteristic identifying of IB business, attributes discussing of the agreement between securities companies and futures firms, summarizing the existing Chinese regulations for IB business and jurisprudence of IB business investors’protection. Figured out the defects of existing laws and deficiencies of investor protection, through comparing domestic and international laws’ profiling which guiding the relationship between investors, securities companies and futures firms. And summarized previous researchers’ advice on investors’ risk and related legal disadvantage from risk prevention, futures margin and transaction settlement respectively. At last, this paper presented a differential recommendation on legal risk control to protect investors’ rights.The main contribution of this paper is the proposed differential legal recommendations which aim to protect invest ors’interests, and it could be elaborated in the following way. Firstly, to build information disclosure system by learning from foreign regulations, that will help investors to be involved at equitable position with more detail market information. Secondly, to enhance the supervision of IB business to prevent operation risk, which also help to protect investors’ interests. Thirdly, to introduce the "Piercing the Corporate Veil" system, which help investors to maximum their protection through getting the compensation from shareholders. Lastly, to legalize the extra-legal IB business with some adjustments in existing laws.By the analysis of the existing regulations of IB business in this study, some adjustment are necessary to be done in order to bloom IB business and protect investors’ rights. It was hoped to put forward the recommendations for IB business’s theoretical foundation and legal perfect modest.