Research On The Guarantee Implementation System Of Margin Trading

Margin requirement grew at a high speed，that play an important part in building themulti-level capital market.Guarantee is an indispensable key step for Margin Trading.However,our current legal system could not meet the rapid margin development.The trust mechanism thatChina’s legislation adopts on the issues of financing and security lending conflicts with theexisting legal theory and system，leading to the paradox of its own is more difficult to justify.Most of the domestic scholar have queried it，but have not formed the unification understanding.At the same time，they propose“releasing pledge”，“the maximum pledge”，“the accountimpawns”and other theories separately. Through analysis,“the highest amount to impawn”is themost suitable for our legal frameworks to satisfy Guarantee requirement in Margin Trading.Chapter Ⅰmainly introduces the concept of Margin Trading,account system, legal relationsand its conflict with the existing security laws. Chapter II it refers to the margin security in othercountries and districts..such as the security transaction of Uniform Commercial Code andConvention On Substantive Rules Regarding Intermediated Securities.Chapter Ⅲdraws acomparison among these three security ways, and analyses and confirms the“the maximumpledge”on margin.Chapter IV try to get over those problems by making rules.the rules is madebased on“the maximum pledge”and the trading mechanism of Margin,promoting thedevelopment of Margin of the business.