Research On Risk Control Of Margin Trading Of KY Securities Company

As an innovative business of KY Securities,which enjoys a relatively fast growth and promising development prospects,the margin financing and securities lending business has brought new opportunities and developments to investors,KY securities companies and the securities market as a whole.However,with the rapid increase in the size of margin financing and securities lending market,the high risk of margin trading has also been continuously demonstrated.As an important participant in margin trading market,KY securities firm plays an important role in risk control effectiveness.How to further improve the risk control of margin trading business is of great significance to the entire margin trading market[27].Against this background,this paper studies the risk control of the margin trading business of KY Securities Company.Based on the research of comprehensive risk management theory,financial risk control theory and operational technology review theory,combined with the actual practice of KY securities firm's margin trading business The paper analyzes in the risk control of the margin trading business,including the risk control organizational structure,the setting of the standard risk line for margin financing and securities lending and the effect of the current risk control,Risk identification,risk assessment,risk monitoring and risk management aspects of the existing problems.Second,this paper identifies the existing risks of the securities and securities financing business of KY Securities.The study distributed 155 questionnaires and identified four major risks faced by KY securities companies in conducting margin financing and securities lending business among the numerous risks that may be faced.Then,a comprehensive qualitative and quantitative analysis was used to evaluate the four major risks.The qualitative analysis part mainly uses the expert scoring method,combines the probability of occurrence of the four risks and the degree of impact on the company's loss to comprehensively rank the risks,and finds the corresponding position in the risk matrix map and draws a risk matrix map.The quantitative analysis part mainly uses the stress test model and the expected loss model to measure and rank the impact loss of the three main risks.Compare the sorted results with the sorted results from the above risk matrix diagram to determine the risks that need to be focused and prioritized.Finally,according to the results of quantitative sorting,KY Securities Co.,Ltd.will optimize the risk control of margin financing and securities lending business,and propose specific improvement suggestions for the four risks of credit risk,market risk,business scale risk and operational risk,respectively,to finance the financing of KY Securities.The continuous development provides a reference.