Research On Risk Management Of D Securities Company’s Margin Financing Business

With the continuous improvement of various laws and policies in the financial market,the diversification of various businesses in the securities market is promoting the continuous development of the securities market.The development of margin trading has driven the liquidity vitality of the securities market,is conducive to the effective allocation of resources,and promotes the mature and stable development of the securities market.In recent years,the rapid development of margin trading has increased the activity of the financial market,increased the enthusiasm of investors,and brought huge profits to securities companies.But everything has two sides.When securities companies obtain high profits from margin trading,they will also magnify various risks.In the early stage of margin trading,due to the stability of the market,risk management did not receive enough attention.In 2014,margin trading reached its peak,and the number of investors and the scale of margin trading increased sharply.When the stock market fell sharply in 2015,the securities companies and investors involved in margin trading suffered serious losses,exposing the problem of imperfect risk management system.How to prevent risks has become an urgent issue.In order to effectively manage the risks in the process of margin trading,it is necessary to analyze the characteristics and risks of margin trading and strengthen supervision and management,so as to make margin trading and the whole securities industry develop healthily and orderly.This paper introduces the concept,transaction characteristics and risk types of margin trading in detail,and introduces the relevant theories of risk management.Taking D Securities Company,where the author works,as the research object,through the questionnaire survey method,it is concluded that the current risk problems faced by margin trading business include: market risk,credit risk,operational risk,liquidity risk.The analysis found that the causes of the risk problems are insufficient prevention and control of market risk,imperfect customer credit risk assessment system,formalized staff business operation and qualification review The business scale does not match the company’s capital strength.Based on the problems existing in the margin trading business of D Securities Company,this paper proposes solutions: by establishing a dynamic margin system and business risk early warning system,establishing a risk event database,expanding the scope of underlying securities and strengthening the professional level of investment advisers;Improve the customer credit evaluation system;To strengthen staff training and improve the assessment system of staff’s professional level;Rationally control the scale of business development and strengthen the monitoring of capital liquidity.In order to ensure the implementation and implementation of the various programs,the system,organization and technology should be strengthened.