Research On The Legal System Of Guarantee Of Margin Trading

Margin trading, is refers in the other securities trading places as approved by the StateCouncil or the securities exchange trading in securities,securities companies to lend money tocustomers for buying securities or lend Securities for sale, and the corresponding collateralsprovided by the customers and business activities. At present, China-based securities andfinancial market risk prevention and control considerations, the margin in the currentguarantee system to "short" behavior is strictly prohibited, investors in margin trading is notpermitted to sell the securities first and then borrow securities, the true meaning of thisprovision is to form and content of margin trading were strictly limited. The financingsecurities loan guarantee is that investors need to provide a guarantee of securities companiesin the margin trading,the legal system of the financing securities loan guarantee a long historyin foreign countries, so relatively more mature, but in this system in our country still needsfurtheLra puenrcfhe cmtioanrg.in financing business in China is not a long time, research in this area isrelatively small, but has the huge influence of transaction safety and development of margintrading on the stock market, so the research on this problem should also pay attention to. Withthe development of the financial market continues to mature and expand, margin trading isgradually applied and expanded, which in2006promulgated a special law"Securities Marginpilot business management" on the margin trading guidelines. With the continuous expansionof the scale of the margin trading and financial markets both at home and abroad more andmore complex, the legal system the financing securities loan guarantee should also be made toimprove and perfect the. In addition to the introduction and conclusion, the main content isdivided into four parts:The first part discusses the basic theory of margin trading and securities financingguarantee. In this part, the basic theory of margin trading breakthrough, introduced three basicrelationships involved in the margin trading, this paper mainly discusses the theory disputesexist financing securities loan guarantee and legal nature, do the theoretical groundwork forthe following theoretical analysis.The second part discusses the legal system for overseas financing securities loanguarantee. Mainly introduced the United States, Japan and Taiwan region of China’s financing securities loan guarantee legal system,summarizes and analyzes the common point, and therespective characteristics of the system are analyzed the enlightenment to our country.The third part summarizes the present situation and the insufficiency of Chinese currentlegal system of margin financing guarantee. Specific provisions on the legal system of ourcountry financing securities loan guarantee was introduced, points out the shortcomings of thelegal system of our country financing securities loan guarantee and the conflict with therelevant guarantee system,trust system, it also puts forward some problems existing in thepractice of trading.The fourth part is the core part of the article, discusses how to perfect the legal system ofour country financing securities loan guarantee. In view of the existing problems of the thirdpart is the analysis of the financing securities loan guarantee legal system of our country,targeted measures to put forward specific, I think it should be from the legislativeimprovement of provisions, in the system with the existing trust law, guaranteelaw,coordination, while the introduction of mortgage and other feasible system in theory, andpractice problems timely supplement and perfect, in order to improve the legal system of thefinancing securities loan guarantee.