Researching The Legal Risk Prevention In Margin Trading In Our Country

It has only been six years from the margin trading market has been a pilot program to get into the conventional stage, together with our securities market started later than other countries, so it is not perfect now. and it also has good offset capacity for the U.S. and European stock markets. I select the pilot program of Guotai Junan Securities Co.Ltd as an example in this article. By comparing the operation of the margin trading business in this Securities Co.Ltd. and the changes in the system construction aspect after the past few years, it can be seen that although we introduce the margin trading plays an important role in such aspects as:to broaden the business types in our securities market, and to avoid the non-systematic risk, to discover the price, to enhance liquidity and so on. However, it is also a new thing for our securities market, we should continue to accept, at the same time, and also need to continue to expand and improve. Relative to the European and American developed countries. China’s securities market is still in a relatively undeveloped stage, each system is still urgent to supplement and improve.In this paper, by analyzing the operation mechanism of the margin trading business, and the condition of its operation in Guotai Junan Securities Co.Ltd. to analysis the legal risks in our margin trading business, and to propose corresponding preventive measures.After analysis, we found that there are still some loopholes in the legal system and the market level of margin trading, and many aspects of the system construction is also need to be strengthened.The margin trading business itself is a high-risk investment business, because of the imperfect legal system, it is easy to bring some unnecessary risks and disputes to the market transactions.Variety of main body involved in margin trading business,every missing detail may cause heavy losses to market participants, however, the shortcoming in these systems is that it can be avoid completely in the process of summing up experience and lessons by us.To establish and improve the margin trading system,it has important warning value for all levels of participants after trades in this market.Therefore, if we can regulate the different market participants, it will play a good role in reducing the risk and promoting the development of the margin trading health.Only if we regulate perfect in these three areas, China’s securities market can be run in healthy, and it will play its role, and add new vigor to the economic development of our country.