Study On Legal Securities System Of Margin Trading Of Our State

Margin trading refers to borrow funds to investors through a securities company or securities borrowed and securities trading patterns to provide security. Early, just building our securities markets, taking into account the lack of relevant systems and norms, margin trading is strictly prohibited. With the establishment and improvement of the securities market, in 2005 promulgated the "Securities Act" for the development of margin trading system opened a hole. From the perspective of the development of China’s market economy, the development of the margin is an inevitable trend. March 31, 2010, China’s official launch of margin trading pilot, become a milestone in the development of China’s securities market. With the accumulation of experience and maturity of the pilot margin trading of securities companies to become a routine business. Margin was officially launched in early 2010, now has five years. Margin as financial innovations, with increased market liquidity, stabilize market prices, improve the market price discovery mechanism and other functions, but at the same time, there are also magnified risks, conductivity and other defects. It is its function and defects simultaneously, making the one hand to encourage the margin, on the other hand should strengthen its supervision.Research on the jurisprudence of the margin trading system is mainly from the legal and regulatory perspective. Risk control is the starting point and destination of the majority of scholars. But the margin regulatory legal system design, is not only for risk control away control risk, it should be in order to protect the interests of investors to control risk. In the specific design of the system and improvement of the regulatory process, should be based on our regulatory objectives set margin trading, based on the practice of margin trading, build investors’ hierarchical regulatory system. On the one hand to protect the enthusiasm of small investors, the other big investors to limit the abuse of margin trading tools; further relax investor market access threshold, expand the scope of the underlying securities market access; the specific regulatory regime, should improve margin system, the abolition of price rules, give full play to margin trading market price discovery function and promote market liquidity.