A Research On The Management Of Security Company’s Introducing Broker Business

After the introduction of HS300Stock Index Future on16APR2010, the original IB model has been changed overwhelming. A new selling mechanism has been brought into the stock market which only can be called in China. Investors have more choices in capital market which means they have more strategies to invest. As a result, more and more Security Company has taken progress in its business area. It acquires Futures Company to let their customers invest Future market. This is a creative business which can help Security Company increase their revenue, and it becomes a new trend.Based on the IB business model in USA, Taiwan and Mainland, this essay analyses IB business model’s risk point in China by comparing each model’s character. American financial market is mixed operation and its IB model is multiple model; Taiwan religion’s IB model is external model; IB model in China is similar with Taiwan model, but its requirement is more restrict than both model, which creates a safer environment for Chinese Securities Company. For readers could understand better this essay, author introduces Introducing Broker business. Stock index future’s concept, history and implication. Stock index future in China developed in a low speed, as a result, Securities Company conducting IB business also is slow. When a new future product or future business appears, it is easy to take a risk to Securities Company. Combined with theory and practice, author classifies the risk when G Company conducts IB business, analyses how G Company controls risk, and give advices to regulator, Securities Company and Futures Company. The main risk for Securities Company is imperfect institution, IT technology and staff. Based on G Company’s experience of IB business, offers three advices:1. professional train for employees and customers;2, classify customers by specification and giving designated service;3, design flawless system flow for Securities Company.