Margin Regulation Of OTC Derivative Through CCP

The impact of the global financial crisis continues,exposing the global financial market management practices in the effectiveness of regulatory and risk prevention and control of a serious lack.Especially in the off-site derivatives link,the volume is extremely inflated,but most are not effective control,in the field of private law autonomy.Compared to on-site derivative products,OTC contracts are more flexible and offer more space for negotiable specific parties.A large number of unique product contracts can be circulated in the OTC market,which are usually smaller and less liquid and are almost entirely dependent on the dealer's commitment.The lack of regulatory oversight in off-the-shelf derivatives can easily trigger a systemic risk in financial markets.The collapse of AIG and Lehman Brothers is a good example of the serious dangers of derivatives trading.Risk control,especially in circulation and billing aspects of the control is very necessary.This paper mainly focuses on the margin of OTC derivatives.It is divided into the perspective of the central rival clearing mechanism,which is divided into the connotation of the margin of the derivative of the OTC,the legal relationship and the margin of the margin,the ownership of the security deposit,Margin of the five jurisdictions outside the jurisdiction.This paper introduces the basic principles and methods of establishing the margin of derivatives from the basic point of view of scholars at home and abroad.The margin level is mainly affected by the fluctuation of price fluctuation and liquidity.Generally speaking,the lower the margin,the better the risk control The Margin setting can be divided into strategic basis margin and risk base margin.The former is based on the value of the assets in the portfolio,regardless of the correlation between the investments,which is the price factor between the associated portfolios,from the point of view of reducing investment costs and improving the efficiency of the use of funds.The first chapter focuses on the connotation of derivatives margin.First,the three types of margin are introduced.Secondly,the derivative guarantee will be classified as a special collateral,expand the scope of the asset extension that can be used as a margin,and treat the hedged assets including the securities as the pledge material.Finally,the basic model of OTC derivatives is expounded from the perspective of centralized liquidation,and the physical isolation model is selected according to the present situation of derivatives development in China.The second chapter focuses on clarifying the legal relationship between derivatives investors,derivatives brokers and derivatives exchanges.And put forward the three legal risks of the derivatives margin,including the ownership of the funds in the margin account is unclear,the transfer of the ownership of the deposit is in conflict with the liquid prohibition clause stipulated in the existing law and the jurisdiction of the transboundary margin transfer Conflict and so on.The third chapter clarifies that the ownership of the OTC derivatives is owned by the investor and identifies the criteria for the specificization of the pledged property and the conditions for the priority payment of the collateral.The fourth chapter clarifies the difference between the quick disposal of the deposit and the liquid quality,and puts forward that the derivative deposit should be used as an exception to exclude the liquid prohibition clause.The last chapter proposes to focus on the expansion of domestic jurisdictions and cooperation with international financial organizations in the process of transboundary margin transfers.At the same time,we should pay attention to the issue of property and then pledge.