Research On The Development Of Prime Broker Business By Zhejiang CT Securities Company

The development of China's securities industry has been decades of history,which contains the format that started from scratch,developed from simple to complex,constantly chasing the securities industry in developed countries.However,China's securities industry is still in a early stage of development,and compared with the developed ones,there is a big gap in many aspects.China's securities industry is also facing the homogenization of serious competition and the shock by the Internet finance.Therefore,the securities industry is badly in need of innovation and transformation.In recent years,the securities industry has accelerated the pace of innovation under the policy guidance of the advantage,for example,the securities margin trading business,private equity fund trusteeship business and the financial products retail business are all in the accelerated development,which provides a good environment for the prime broker business.This paper takes how the CT securities develop the prime broker business as the research object.It firstly explains the related theories of the business mode and characteristics of the prime broker business,illustrating that the prime broker and private equity funds are inseparable.Then this paper proves the feasibility through the analysis of CT's market environment and their own conditions.Based on the high feasibility,this paper designs the system solutions:CT company should establish an alternative investment subsidiary to uses the FOF pattern to incubate and select excellent private equity fund.The system scheme also gives consideration to the input-output ratio and proper risk management.Then this paper illustrates how to provide guarantee for the prime broker business in the ways of perfecting the organization and system,to obtain custody qualification,to strengthen the construction of IT system.Through this study,it can be found that the prime broker business has multiple meanings for a securities company.It is a feasible way of transformation in current environment.Zhejiang CT securities should seize the opportunities in the current industry trend,develop the prime broker business,so as to realize its own innovation and transformation.