Research On Risk Prevention And Financing Of Securities Lending And Securities Based On Dynamic Margin Ratio

Margin trading, also known as securities margin trading, is a conventional trading system in the western developed countries. However, in our country for such as incomplete system, the legal system is not perfect, the business is not standardized,and so on. The risk factors are particularly critical. There are many kinds of risk of margin trading, which has been a hot topic for scholars to study the financing and securities lending transactions. Scholars in western countries have a more comprehensive understanding of this, and have successfully combined theory with reality, so that it has played a significant role in the securities market. But for our country, financing and securities lending business is a new derivative trading tools,how to prevent the risk of it will be the focus of this paper.This paper will start from the margin to study the issue of risk prevention of margin trading, and introduces the importance of the dynamic margin system to guard against the risk of securities companies. In the empirical part of the selected two targeted underlying securities, consider from the price, volatility, initial debt three,derived from the VaR method of the GARCH model based on real-time dynamic margin ratio formula. Through the study of this paper, it is found that the dynamic margin system can play a certain role in preventing the risk of margin trading. On the basis of the dynamic margin ratio calculated by the VaR method, it is recommended to implement the daily dynamic market system and establish a dynamic risk warning system. The system through each trading day to extract information about the investor's trading data,the dynamic accounting customer credit accounts are faced with the risk and to be classified, in a timely manner to respond.In order to guarantee the dynamic margin system play a greater role in financing risk prevention at last, this paper puts forward some relevant measures on risk prevention aspects, hoping to promote the development of China's margin trading business faster and better...