Research On The Precaution Of Operational Risk Of Day-End Liquidation In Small And Medium-Sized Securities

From the Asian Financial Tsunami of the new millennium to the mortgage crisis of 2008 have aggravated the turbulence of global financial market,leading to the global economic slowdown and inflation,it can be seen that frequent financial crisis are closely linked to global economic integration.Meanwhile,Chinese stock market is integrating with the world progressively.Since the 19^th National Congress of the Communist Party of China,leaders of the Party central committee with general secretary of Jingping Xi as the core,they attached great importance to the construction of financial infrastructure.It has been emphasized that the fundamental task of financial work is to maintain the safe operation of financial infrastructure,to prevent and defuse financial risks,especially to contain systemic financial risk,which is to elevate financial risks prevention to the national strategic level.In order to protect the legitimate rights,interests of investors and improve the safety of customer transaction settlement funds,the China Securities Investor Protection Fund Company continuously monitors the size and details of settlement funds of clients in securities brokerage business through monitoring platform.In accordance with the requirement of relevant regulations.Small and medium-sized securities should gradually improve attention to the customer settlement fund security,handle properly the risk of customer settlement fund security,and perfect the risk management mechanism related to liquidation business.Modern investment theory classifies risk as systemic risk and non-systemic risk.One of the Non-systematic risks mainly include Liquidity Risk,Operational Risk,Credit Risk,Market Risk and Procedural Risk etc.As a kind of operational risk,day-end liquidation operation risk has attracted the attention of brokerage companies.The main content of day-end liquidation as the last line of defense to control operational risk is the process of calculating the amount of securities and funds receivable and payable by both parties on the settlement date by liquidation operators according to data on the results of securities transactions provided by China Securities Registration and Settlement Corporation,Shanghai,Shenzhen Stock Exchange and Fund Company.The research on the operational risk of day-end liquidation has raised more and more concerns in recent years.However,studies on evaluation of Risk Level of Day-end Liquidation Operations of Small and medium-sized securities and Suggestions on Risk Prevention and Optimization Based on Risk Level is rare.In order to improve the risk assessment and prevention ability of day-end clearing operation of small and medium-sized securities,this paper,combined with the actual operation situation of small and medium-sized securities,takes donghai securities of national comprehensive small and medium-sized securities as an example to carry out risk assessment and research of day-end clearing system.First,reference China securities investor protection fund co.,LTD.,Ed.The securities market trading settlement funds monitoring system warning cases,analysis and determine the small and medium-sized brokerages,eventually clearing operation risk evaluation factor set:the operator factors set,business processes,factor set,software system collection,organization and management factors,external regulatory factor sets.Secondly,analysis network process（ANP）and Super Decisions software are used to design the structural diagram of analytic hierarchy process between the factor sets that affect the operation risk of end-of-day liquidation and the factors.A comparison matrix is formed after the opinions of liquidation experts are summarized and corrected by designing questionnaires and consulting,and then the weight of factor sets is evaluated.Furthermore,D-S evidence theory is used to integrate the linguistic evaluation of several clearing experts on the operation risk of donghai firms’day-end clearing operation,and the risk level of the operator of donghai securities’day-end clearing operation is obtained--the credibility is"high".Meanwhile,in view of the operational risks existing in the end-of-day liquidation system of donghai securities,the optimization Suggestions are put forward from the aspects of personnel management,company process,internal control,software system and external supervision.Thirdly,a comparison matrix is formed by designing a questionnaire and consulting the opinions of liquidation experts,so as to evaluate the weight of the factor set.Finally,D-S evidence theory was used to integrate the linguistic evaluation of several clearing experts on the operation risk of donghai securities’day-end clearing operation,and the risk level of the operator of donghai securities’day-end clearing operation was obtained-the trust level was"high".Meanwhile,in view of the operational risks existing in the end-of-day liquidation system of donghai securities,the optimization Suggestions are put forward from the aspects of personnel management,firms process,internal control,software system and external supervision.The result of the study expect that there is meaning of using to practice for reference in promoting the establishment and upgrading of day-end liquidation operational risk assessment system of small and medium sized securities brokerages.At the same time,it enriches the content of risk management theory of day-end liquidation operation in small and medium sized securities.