Research On Custody System In Securities Firms

The Chinese stock market was build in 1990s and it was very usual that securities companies peculated customer margin in its early running because of imperfect legal system, transaction management system deficiencies, defective of body corporate management structure and so on.Peculating customer margin was the main reason for the bankrupt of securities. So, it is vary necessary to establish the system of customer margin register and management. And the researches on it have theoretical and practical significance.By theoretical researching and real case studying, this paper introduces the basic theory of customer margin register and management system. By studying the development of the system and comparing different systems, the author draws the conclusion that the Third-party custody system is the direction of customer margin register and management system reform. And it is the only way to protect client assets, improve securities companies operating efficiency and the securities industry innovation.In the next part, this paper introduces Third- party custody system in CITIC securities Co., Ltd about the system's design principle, account structure and operation. The paper focus on the Third- party custody system's effectiveness and problems, such like the cooperation , legal disputes and unfair competition among the bank and securities company .And the paper discusses some difficulty the system may face in the future just like the diversity and real-time of delivery .In present, securities companies should seize the opportunities of the reform to create the Third- party custody system and pay a great attention to the system's operation and management including the risks of technology ,the delivery system and the ability of financial innovation. By building the Third- party custody system, the securities companies would expand the field of business, turn over the "the seller business" into the "buyer's business", enhance the comprehensive ability to compete and promote the health of the securities markets and sustainable development.