Study On Modes Of Deposit Of Client Clearing Funds

The misappropriation of client clearing funds by security firms has alreadybecome a stumbling block to the development of security market, mainlydue to the unreasonable modes of deposit of client clearing funds. Bymaking analysis of the current situation and underlying reasons for themisappropriation, the thesis draws a conclusion that the main externalreason is the thrice functions assumed by business counters of securitiesfirms, namely, the pre-settlement fund control, fund receiving andsettlement, while the main internal reason is the block of financingchannels of securities firms. Given the above reasons, this thesis drawsupon experiences from some Asian countries, and analyzes the prevailingmodes of deposit of client clearing funds in China and finally comes upwith several suggestions. To draw a conclusion, the commercial bank isthe best choice of depositing client clearing fund. Through improving thecurrent modes of deposit of client clearing funds and smoothing thefinancing channels in line with the principle of securities firms takingcharge of securities and banks taking charge of funds, themisappropriation of client clearing funds can be completely eradicated.