Research On Risk Management Of Margin Financing And Securities Lending Business Of G Securities

Because of its unique leveraged transaction characteristics and short selling mechanism,it has become the main basis for the innovation of other financial products as an innovative type of credit transaction.It is helpful to perfect the stock price formation mechanism,the financing of the securities market,Capital allocation,and asset pricing have played an important role.The development of margin trading has brought new profit growth points to the securities companies,but also enriched the way investors deal,but the margin trading is also a"double-edged sword",which contains a small lever Mechanism to the financial system caused by the potential risks can not be ignored.Securities companies as the main participants in the main,how to better prevent and control the risk of the transaction process is the key.Therefore,it is necessary to carry out in-depth study on the risk management of securities companies in margin trading.This paper first elaborates the relevant theories of margin trading and risk management respectively.Secondly,it introduces the present situation and risk management system of G securities company,and the impact of margin trading on G securities company.Based on the theoretical analysis,the risk identification method of the working flow chart and the risk assessment method combined with the expert technology evaluation method and the risk coordinate chart are used to analyze the risk of the margin trading business of G securities company to find out its potential risk,Finally,the paper puts forward the internal control improvement measures and the corresponding external supervision and protection to the risk management of margin trading of G securities company.Finally,it puts forward the measures to improve the risk management of the securities company's margin management business.