A Study Of Settlement Risk Management Of The Brokerage Of Securities Company A

The securities market has functions such as facilitating the capital flow in society,optimizing resource allocation and identifying market prices.Since the 18 th National Congress of the Communist Party of China,the strategic importance of the Chinese capital market has increased markedly,the secondary securities market has grown rapidly,and the market size has kept expanding.Currently,the primary settlement model used in the Chinese securities market is“nonstandard” DVP settlement model built on central counterparty institution where there is a time difference between security settlement and cash settlement.Under this settlement model,regulators should attach more importance to the settlement risk management for settlement participants.Now,against the backdrop of the accelerated switch to the track of wealth management by securities companies,the types of services and products offered by these companies are constantly increasing.Thus,how to complete the brokerage settlement more efficiently within a sound risk management framework is a problem that urgently needs to be addressed by securities companies,especially small-and medium-sized securities traders like Securities Company A.Securities Company A needs to improve its information technology capability,talent pool and institutional development.For A,the brokerage settlement risk management has a direct influence on its rating and whether it is able to acquire the qualifications for offering related services,so it is essential to enhance brokerage settlement risk management.Based on the abovementioned background,this article takes “the settlement risk management for the brokerage of Securities Company A” as the object of study,and adopts methods including document analysis,experience summary,research analysis and process analysis to identify the settlement risks faced by the brokerage of Securities Company A and propose measures to improve risk management according to actual experience in settlement.The study found that the settlement risks that it faces are concentrated on the risk of cash settlement maloperation,the risk of settlement maloperation,the risk of the settlement process of publicly offered funds,the risk of the settlement process in the OTC market,and the risk of the pre-service process.With the use of the theories of total risk management and processoptimization,this article puts forward the measures to improve risk management,including changing the cash settlement model for brokerage,creating a mechanism for OTC market product pre-settlement,transferring publicly offered fund services in the OTC market,enhancing information technology capability,introducing RPA technology,and strengthening internal organizational institution,which can guide Securities Company A in its brokerage settlement.Some of the problems pointed out in this article are problems shared by most small-and medium-sized securities companies when settling accounts for brokerage.Therefore,the measures to improve brokerage settlement risk management for A proposed in this article are also references for other securities companies...