The Necessity And Feasibility Of Trust Company Involved In Margin Trading

Margin trading is strictly prohibited in the early stage of the securities market. In October 25,2005, the securities law was revised and qualified brokers were permitted for margin trading. At the same time, in order to promote the margin purchase and short sale transaction smoothly, the CSRC again in June 30,2006 released the "securities company margin business management method ", the pilot in promoting margin trading development and at the same time, there have been some problems, including the introduction of the trust relationship abnormal. This paper will take these problems analyzed, and then starting to demonstrated the necessity and feasibility of the trust company take part in margin trading. This article include the introduction, text and conclusions, the text divide into four chapter:The argumentation of the thesis is as follows:The first chapter, margin purchase and short sale transaction are summarized, this paper discusses the definition, development of the general process and its main effect. Through the first chapter of the description, basic the limitation of trust companies into margin purchase or short sale transaction is the basic concepts.In the second chapter, discusses present margin trading legal system present situation and problems, analyzes the existing problems. Through these, this paper analyses the feasibility of trust companies involved, from the law for trust company involved in margin trading provide support.The third chapter, from the legal relationship's angle to discusses trust company involved in margin purchase or short sale transaction's necessity and feasibility. There are so many problems existing that implore the trust company to involve.The fourth chapter, from margin purchase and short sale transaction refinancing of trust companies involved, this paper discusses the necessity and feasibility. First, margin purchase or short sale transaction is put forward the financing needs with the development of the margin, then an analysis on the market can provide refinancing of main body, focusing on the trust company funds to refinance, analyze its advantages. And then analysis the concrete model of the trust company for trading on margin purchase providing funds to refinance, this paper analyses the legal relationship of trust companies, thus finally to participate in margin trading offers a new way.