Research On ETF Arbitrage Implementation Plan Of Security Company

Brokerage, key to security companies in China, represents over 70% of profit for those companies. Increasingly intensive competition in the market forces every player in the market striving to seize market share, and to increase turnover rate。According to related measurement and calculation, ETF arbitrage brings huge transaction volume and income to security companies, with the main contributor being arbitrage transaction, index investor buying ETF, index speculation, T+0 speculation and greater commission variety.The paper first presents background information for ETF implementation, value of ETF study, research methods and content, ETF development trend in both home and abroad, as well as existing result of ETF study based on collected literature, reference, and business data. Then, some domestic ETF arbitrage implementation proposals are analyzed with mathematical models built for mathematical reasoning, correlation analysis and regression analysis. Feasibility of these above-mentioned implementation proposals are validated by design of several ETF trade softwares. And introduction of domestic ETF products follows, together with current situation and risk analysis of ETF trade; after which, we can see ETF arbitrage trade questionnaire survey designed based on raw data collected to better understand customer needs, problems and suggestions for improvement. The paper also gives a case study of G Security Business Development of a security company(G for short thereafter). Finally, some thoughts and strategy for domestic ETF arbitrage trade to enhance market share, boost trading volume, increase revenue and to save cost are offered based on conclusions from various studies over ETF arbitrage.