Case Research On The Risk Control Of L Securities Company's Margin Business

Margin business refers to the business activities in which securities companies receive collateral from investors and lend funds to investors for buying securities of listed targets or lending securities of listed targets for sale.Since its opening in 2010,the margin business has achieved rapid development in China,and the impact of margin financing can be seen as the positive and negative side of a coin.On the one hand,it has changed the situation of "unilateral market" which can only "do long" for a long time in China's securities market,provide investors with more trading opportunities,improve the pricing mechanism of the securities market,and also bring new profit sources to securities companies;On the other hand,because of the fact that the scale of financing in our market is much larger than that of securities,the mechanism of "short selling" is difficult to play,and the volatility of the securities market is increased due to the leverage of the margin.It increases the business risk of securities companies and even poses a potential threat to the smooth operation of China's financial system.Especially in recent years,the high risk of the securities industry has been exposed to the public view,the "stock crash" in 2015 has given the stock market a painful lesson,and the stability of the securities industry has received more and more attention from all walks of life in the society.The regulatory authorities have increased the regulatory requirements and efforts on the business of securities companies.Margin,as an important credit business of securities companies,is a key aspect of the regulatory departments' attention.At the same time,The market competition of margin business is becoming more and more intense,and the service of different securities firms is becoming more and more homogeneous.Therefore,the ability to control the risk of margin business has become the main "battlefield" for securities companies to compete for.Therefore,under the requirements of external supervision and internal development,it is necessary for securities companies to find out the weak links of margin business and strengthen the control of the risk of margin business.This paper takes l Securities Company as a case study and analyzes the risk control situation of l Securities Company's margin business.First of all,the related research on margin and risk control theory at home and abroad is combed,as the theoretical basis andpaving the way for the full text.Next,around the case company to carry out research,introduce l securities company general situation and margin business general situation,do a company outline description;Then,the paper analyzes the securities margin of l securities company,finds out the risks faced by the business,combs out the risk control measures of l securities company,and makes a concrete analysis of the important link of risk control-net capital reserve and margin ratio setting.Then,combined with the specific cases and facts,the paper analyzes the existing problems of risk control,and finally puts forward some specific solutions to the problems in the risk control of l securities companies.The solution proposed in this paper not only has an important effect on l securities company,but also provides a reference for other securities companies to solve the problems faced in the development of securities margin business,which has a strong practical significance.