On The Legal Control Of Securities Margin Trading

Securities margin trading as a credit mechanism for the introduction of spot transactions in the security transaction, almost simultaneously emerge with the birth of the securities market. This approach stems from transactions in commercial transaction, the operation mechanism and its special characteristics have a great attraction for investors in the securities market prosperity, and promoting capital flows play. It is known as mature markets lubricants. Credit is also based on special mechanism of securities transactions; such transactions will bring great benefits to the investors .At the same time it is accompanied by huge risks. Through learning from relevant countries and regions'stock market credit transaction risk control mechanisms, I intend to give some modest proposals on our securitiestransactions legal system to control risksThe article is divided into three chapters:In the first chapter: Securities margin trading outlines. I turn first to the definition of securities margin trading. Securities margin trading is a credit to buy space for the operation of the securities and short selling of securities transaction type. Dealer credit which is granted to the investors in securities transactions is the core of this relationship. Then I summarized the features of securities margin trading .It consists of the economic functions of a securities exchange and credit risks. Securities margin trading reflected in the economic functions are: prosperous market, promote circulation, promote economic development, etc .Securities transactions and credit risks are embodied in the institutional risk, credit risk and market risk, and other aspects. These risks are related to margin trading of securities concomitant economic functions. If we introduce it when the securities market is still immature, a credit transaction must need a strong risk control legal system. Finally I introduce...