A Research On Risk Management Of The Business For Margin Trading In Securities Company C

The margin trading &short selling,as an innovative business,started a pilot operation In 2010 and turned into a conventional securities business in 2011.As innovative securities business,they ae developing rapidly and have broad prospects in China.Their emergence has brought new opportunities for the development of the securities market and its participants.However,with the rapid development of the two financing business in China,the high risk characteristic is more and more clear out,more and more people and institutions began to pay more attention to its risk,the securities company as a direct participant,play an important role to control the riskThere are six chapters in this paper.In the first chapter,it mainly introduces the domestic and foreign situation of margin trading &short selling business.In the second chapter,margin trading &short selling business and its own risks was mainly introduced.In the third chapter,it focuses on how C securities company control the risk of margin trading &short selling and the current situation of risk control.In the fourth chapter,the risks of margin trading &short selling business performed in the C securities company was mainly introduces &describes,pointing out its main risks including market risk,credit risk,liquidity risk,and management & operational risk.The causes of its risk was analyzed too,and the main causes are: investors suitability work needing to be strengthened,the lack of effective communication with the customer,the lack of risk control indicator,proficiency level of business operation & thought of branch staff needing to be strengthened,non-stableness of business operation system.In the fifth chapter,the solutions were puts forward to enhance the management of margin trading &short selling business of the company.Such as carrying out the customers' suitability management,providing differentiated services,enhancing communication with customer,improving the index of collateral conversion rate,and finally strengthening the staff management of the company.In the sixth chapter,a summary and prospect was made.This article,setting forward to the normalization of margin trading &short selling of company C,focusing on risk control in this business development,taking it as a penetration pathway to further exploration,try to provide to company C with improvement and optimization measures such as finding out the loopholes and problems in risk control of margin trading &short selling,developing and completing the risk control mechanism,strengthen financial business risk awareness,improving risk hedging ability,and strive to promote the stable development of the margin trading &short selling business,provide advice for China's securities companies to improve and develop the risk control system,to improve the financial market risk control ability.