Research On Intensive Middle-ground Management Mode Of Registration And Clearing In The Innovation Development Of Security Company

In the organizational structure of securities company, the existent registration and clearing management lie at the end of the business chain. The registration and clearing management, without any direct connection with the business, is mainly responsible for registration,depository,clearing,clients fund management,settlement and some business accounting, therefore, being classified as background function department. While broking, self-operating, asset management, investment bank business directly face clients and market and lies in the head of business chain, therefore, classified as front counter business department. The main features of the existent registration and clearing mode are: due to historical reason, the company’s resources are line-segmented according to company business. Each front counter business is embedded with part of the rear counter business, implying that both of the functions of front counter and rear counter are vaguely defined; The rear counter function department’s lacking the right of integrating the company’s resources is identified as business-following mode, carrying on with its work guided by business department. This mode has played an positive role in the early development of the Chinese securities industry and made great contribution to securities companies in seizing the market. But the trend of future development of securities company points forward a need for transformation to intensification.With the rapid development of the securities market and computer technology, the approaches, technical architecture and clearing and settlement of different kinds of business transaction are becoming increasingly complicated. The gap of opinions towards different kinds of business is widened and therefore, the traditional rear counter department support mode is difficult to sustain. The modification of the securities company’s organizational structure and function is imperative. In the context of broker’s business becoming increasingly prosperous and front counter personnel mobility being higher and each company’s pursuit of normalization and elaboration, it is inexorable trend the separation of the market exploration team and business realization team. The front counter business departments hope to concentrate their efforts on the area where their core competitiveness lies, in order to meet customers’ personalized and diversified needs..As the business transaction mode is becoming more and more complicated, there is no clear responsibility boundary between registration clearing business and other business. On the one hand, the front counter business department can not effectively communicate with the rear counter business department; on the other hand, feedback of the back to the front is slow. They often pass the buck to each other to escape responsibility. There should be a department which is responsible for identifying the front counter business’ demands for registration and clearing and also for proposing solutions and communicating well with relevant departments about the following process, in order to efficiently promote the high-efficient realization of the business. In this process, we need to put the scattered registration and clearing business together to form a middle-ground management department which possesses a high efficiency.At present, the security company establishes the clearing department, which is responsible for registration and clearing. It is the cornerstone of normal operation and innovation, also of the normalization and optimization of financial management and risk control. As the rear counter of broker’s operation and the key process of risk control, most of the registration and clearing work has been integrated and centrally managed. According to the nature of the work, the broker’s registration and clearing business belongs to background and supportive business, and because of situated in background,the intensive management of registration and clearing has not been realized.This paper discusses how to start the reconstruction of the registration and clearing process and put together each department’s resources and functions, then gradually finish the functional integration of registration and the modification of business structure. And in the wake of it the author build four basic systems: central management of clients account, central clearing, central settlement and fund management, central accounting of clients’ fund, and also through middle-ground registration and clearing management mode to promote highly the efficiency and then achieve the intensified development.What this paper innovates is based on the feasibility analysis of the establishment of registration and clearing center, it concludes that the security company’s business innovation needs the intensive management of registration and clearing. What’s more, this paper suggests some specific assumptions and implementation framework of the system’s establishment, and also provides theoretical basis for intensified management of registration and clearing in the aspects of specialization, resources sharing, restruction of business proess and the modification of deparment duties. The advantages of this mode are as follows:1. Reduce the operation cost, improves the flexibility of the company;2.Improve service quality and efficiency;3.Control business risk;4.Make resources available for sharing;5.Strengthen the management of registration and clearing, improve competitiveness and help to realize strategies. By integrating registration and clearing business and shifting forward the function of clearing business, this mode can modify the efficient approach which supports the clearing, readily satisfy business needs and determine the optimal implementation proposal of registration and clearing. In this process, the clearing department gradually transforms from business-following to business-driven pattern, therefore to promote boker’s innovative business.At last, this paper provides case studies of two securities companies’ implementing intensive middle-ground management and intensive registration and clearing of new business respectively, and make an introduction of their main methods, results and experiences. We also summarize their key factors contributing to success, in order to acquire practice enlightment in implementing the intensive middle-ground management mode of registration and clearing.