Study On The Effect Of Mandatory Closing Rules In OTC

As a derivative of financial innovation,the mandatory closing rules is the core of the traditional "two-fold" business and over-the-counter financing transactions,such as credit transactions.However,in the field of over-the-counter capital allocation,the validity of the over-the-counter financing contract and its mandatory closing rules has been constantly disputed in the field of over-the-counter funding,and the validity of the mandatory closing rules in the two-finance business has been given the "right name" by the lifting of the ban on the twomelt business.The mandatory closing rules is still the main inducement of over-the-counter fund allocation disputes.The effect of mandatory closing rules on over-the-counter capital allocation should not be simply negated or affirmed,otherwise,although the damage to the public interest caused by such transactions is greatly reduced,the financial collar,such as securities trading,should also be created at the same time.The frequent occurrence of moral hazard and dishonesty is of no benefit to the settlement of disputes.Therefore,the research on the effect of mandatory closing rules in OTC capital allocation is of great practical significance for the settlement of disputes caused by mandatory closing rules or the maintenance of order and security in the stock exchange market.This article combs the judicial status quo of the validity determination of the mandatory closing rules in the over-the-counter capital allocation.This paper analyzes the effect of mandatory closing rules in OTC allocation from two aspects: the effect of OTC contract effect on the effect of mandatory closing rules and the independent effect of mandatory closing rules.And summed up the effect of the mandatory closing rules in the over-the-counter capital allocation.Carry on the basic principle and method of cognizance,and draw a conclusion.This paper mainly consists of five parts:The first part,over-the-counter allocation of funds in the mandatory closing rules to determine the effectiveness of judicial status.This part leads to the typical mode of over-thecounter financing and mandatory closing rules through a case,and three main controversial focuses of the mandatory settlement dispute: the effectiveness of over-the-counter financing contract,the effectiveness of the mandatory closing rules and the sharing of loss liability.Then from the collection of sample cases,we summarize the nature and effectiveness of OTC financing contract and mandatory closing rules,and the effect of OTC financing contract and mandatory closing rules on loss sharing.The second part,this paper discusses the presupposition of the effect of mandatory closing rules,that is,the effect of over-the-counter financing contract on the effect of mandatory closing rules.Firstly,this paper analyzes the validity dispute of over-the-counter financing contract from two aspects: the illegality of financial supervision and the dispute of contract nature.Secondly,it analyzes the effect of the effectiveness of the off-site funding contract on the validity of the mandatory closing clause,and concludes that the off-site funding contract is invalid and the mandatory closing clause is not necessarily invalid.The third part,analyze the independent effect of mandatory closing rules.First of all,the nature of mandatory closing rules is defined,and a conclusion is drawn: mandatory closing clauses are not part of the format clause,nor do they fall within the scope of the "no fluid" clause regulation,it belongs to the commercial practice of securities industry.Secondly,the author differentiates the reasons why the court finds the mandatory closing rules invalid from four aspects: the "infringement theory" of mandatory closing rules is not valid,the mandatory closing rules does not violate the "principle of risk sharing",and the other is that the mandatory closing rules does not violate the principle of risk sharing.The mandatory closing rules provisions violate mandatory provisions may not be invalid;mandatory closing rules do not apply civil security rules.The fourth part,this paper discusses the concrete determination of the validity of the mandatory closing rules: the basic method is to adopt the method of interest measurement,and the basic principle is to respect the agreement of the parties and the agreement of the contract.At the same time,the fault degree of both parties and the liability for loss should be taken into account,and the explanation path is the guarantee mode of "account pledge".The fifth part,it is concluded that the effect of the mandatory closing rules in OTC financing should not be simply positive or negative,but should be handled through comprehensive consideration and judgment to deal with the mandatory closing rules dispute.However,the fundamental solution is to perfect the provisions of the mandatory closing rules at the legal and institutional level.