Research On Risk Management Of Margin Trading In Securities Company

Margin trading in our country has just started in recent years, it is a kind of securities businessinnovation in China. But in developed countries, margin trading has become the most common types ofservices. In the past, because the listed company capital is not big enough, securities companies did notcomplete separation and comprehensive treatment, its own problem is quite a lot and the risk control abilityis weak, this business is forbidden. Since March2010, exchange host receives the margin by application, tobrokers and investors, this business has entered the actual operational stage. Margin trading may not onlybilateral trade, also give the market into the running water, when stock prices dropped, it can be a tool toavoid the risk. Because of this kind of innovation trading mode, it not only can make the brokers got morecommission income, but also provide investors with funds and make interest charge. Margin trading alsocan use differentiated investment consulting services to attract more customers’ attention. High yield highrisk. It requires higher ability of China securities supervision department in the design of the trading rulesand securities company in risk control. How to weigh the risk management and the relationship between theeconomic benefits, how to maintain the fairness of the market, the effect of using rules itself to play the roleof the internal market and protect the interests of investors, these are worth more concern of supervisionand the securities companies. This paper mainly studies whether the margin risk management system of thesecurity company is appropriate or not, based on G securities company internal control system, monitoringsystem and compliance of the actual results to verify whether the current regulators and brokers in themargin business risk management of separately the system design is appropriate, and make somesuggestions.