The Case Analysis Of FCA Carrying Out Investor Protection About Alpari Bankruptcy Event

In March 2017's "two sessions",Professor Huang Zemin,director of the Institute of International Finance in East China Normal University,a member of the standing committee of CNDCA,Shanghai municipal government counselor,as a member of the CPPCC National Committee,submitted a proposal to restart the foreign exchange margin trading for the two sessions and caused widespread concern.In fact,in the 80 s of last century,domestic financial institutions had been tried to carry out foreign exchange margin trading.In the developed financial markets in Europe and America,foreign exchange margin trading has developed quite mature.However,its development in China is rather tortuous,which has undergone two degrees of opening and suspension.Even so,foreign exchange margin trading has never disappeared in our country.In recent years,the demand and scale of the market has been expanding.Because domestic banks and other financial institutions are suspended by the CBRC to provide foreign exchange margin trading products and services,enterprises and individual investors have huge risk hedging and investment demand,which provides a good opportunity for foreign exchange brokers to seize the Chinese market.A large number of overseas foreign exchange brokers are providing foreign exchange margin trading products and services for businesses and individual investors in China.However,there is no corresponding regulation in China.The development of industries is not standardized,and investors' interests can hardly be effectively protected.In view of the current situation of domestic foreign exchange margin trading and huge market demand,the voice of restarting and regulating foreign exchange margin trading market is also increasing.This article analyzed the useful experience of foreign exchange margin trading investor protection through the case analysis of Alpari bankruptcy event,so as to provide the corresponding reference in investor protection after restarting foreign exchange trading market.This paper introduced the general situation of the case body,the case background and process,through analysing the Alpari bankruptcy case,obtained the three beneficial practices in respect of FCA on foreign exchange margin trading investor protection,namely customer funds segregated depository system,regular compliance review,the Financial Services Compensation Scheme(FSCS).Focusing on the theme of investor protection,this paper commented on the performance of FCA in the case of Alpari bankruptcy.In this paper,after absorbing the useful experience of FCA on foreign exchange margin trading investor protection,with the reality of our country,proposed six suggestions in respect of investor protection after the resumption of China's foreign exchange margin trading : strengthen the construction of foreign exchange margin trading regulation law,radicate regulatory body in foreign exchange margin trading field,strictly execute customer funds segregated depository system,regular compliance review,the external market supervision,carry out customer assets compulsory insurance system.