Category: Money Tips Date: 2006-01-14
How do investors margin depository? Keep what is appropriate? This is quite an eye-catching topic of the securities market. While the new "Securities Act" have been made to this requirement, but the specific measures and implementation steps are uncertain. Here's what to make of this.
2006 implementation of the new "Securities Law" Article 139 states: "transactions for clients of settlement funds should be deposited in commercial banks, in order to register for permanent residence under the name of each client management, concrete measures and implementation steps by the State Council." . Commercial banks to securities firms trading for clients and management of settlement funds separate register for permanent residence, commonly known as "third-party depository."
The Securities and Exchange Trust Agreement and the Securities and Exchange accounts are brokerage business, the starting point and foundation.
"Securities Law" Article 111 states: "Investors should be signed with the Securities and the Securities and Exchange Trust Agreement, and the securities company to open securities trading accounts, in writing, by telephone and other means, commissioned by the securities firms buy and sell securities on their behalf." This provision clearly between securities companies and investors, the Securities and Exchange commission contract is the securities brokerage business in the first place the basic legal relationship between investors and securities companies have signed only the Securities and Exchange Trust Agreement in order to become clients of securities companies. Securities company for the customer to open securities trading accounts for bookkeeping and management of the Securities and Exchange commission involved in client assets, including customer and client securities transactions settlement funds.
Securities companies fulfill the mandate entrusted to receive, clearing, settlement is based on the responsibility of the customer funds to household control and overall control.
"Securities Law" Article 112 states: "According to investors, securities companies commissioned, in accordance with rules of the Securities and Exchange Transaction Reports to participate in the centralized stock exchange trading floor and, based on the results of transactions bear the corresponding responsibility of clearing settlement."
Trading in securities entrusted to the Securities and Exchange Trust Agreement and the Securities and Exchange accounts, based on commission began, through the offer, bring together the middle of the process of closing and settlement, etc., and finally settled. "Securities Act" clear the securities firms in the full course of business of the statutory responsibilities include: commissioned by the acceptance and front-end control and centralized trading floor to the stock exchange offer, and the liquidation of the securities registration and settlement institution for settlement.
The sale of the securities commission in essence, a money voucher conversion process, the securities company to fulfill the mandate entrusted front-end control, clearing, settlement obligations to the money and tickets must be controlled. In the era of paperless securities trading, money coupons carrier is the account, and therefore the control of the money voucher, in essence, the control of the account. And "Securities Law" as defined in Article 111 of the Securities and Exchange account is to provide the legal basis for the account.
Responsibilities and rights under the equal allocation principle, securities firms and commissioned by receiving, clearing and settlement obligations, they should have both front-and back-end clearing settlement commission control. If we split the broker told clients money and coupons synchronous control, goods to deal with the principle of silver ( "Securities Act" Section 167) will be difficult to implement, settlement can not be held responsibility for breach of contract. If we split the brokerage commission on the front-end and back-end settlement of the synchronous control of the liquidation, then the front-end commission if the broker lax control, caused by lack of money trading risks coupons will be responsible for the back-end money coupon settlement obligations of commercial banks to take Obviously, this led to an imbalance of responsibility and rights.
"Securities Law" Article 112 also stipulates that: "the securities registration and settlement agencies in accordance with the results of transactions, in accordance with the liquidation settlement rules, and securities companies and funds in securities clearing settlement and securities for the clients of securities companies apply for the registration of transfer formalities." This provision is the cornerstone of the securities settlement system of legal persons, namely, the concentration of stock exchange trading floor through the reunification of the securities registration and settlement institution, securities registration and settlement institution, settlement counterparty is a securities company, rather than the clients of securities companies, securities companies or branches other subjects.
To sum up, "Securities Act" assigns securities transaction settlement funds to the customer's overall control and household control. So they can independently control the availability of qualified commercial banks to deposit, select third-party depository of cooperative banks and securities firms on behalf of the law in order to open a settlement account (often referred to as total customer funds depository accounts) to depository total client funds, while commercial banks authorized by customers household management. Depository of funds according to the overall management of customer accounts, obtain interest is also the legitimate rights of the securities company.
Commercial banks on securities transactions settlement funds, corporate clients have a right of supervision and management.
In the clear "Securities Act" on the legal status of securities companies, we can combine the securities depositories in the industry, the international practice, and derive a more definite conclusion: In order to fulfill the mandate entrusted to receive, clearing, settlement liability, securities companies must be customer transactions settlement funds to exercise control; while commercial banks to the customer transaction settlement funds to exercise their supervisory power. Commercial banks play a client funds "gatekeeper" role and can not take the initiative to change the direction issued by client assets, but it must be the client's general ledger, and a breakdown of funds for supervision.
1) The securities companies to conduct supervision and management of client funds ledger.
Securities brokerage firm in securities funds should be deposited in full in a special account opened by commercial banks (including the registration of securities companies had opened in the settlement reserve account), Cunguanyinhang right for that type of account balances and water implementation of a comprehensive monitoring.
2) a breakdown of funds for clients to conduct supervision and management.
Cunguanyinxing commissioned by the Securities transaction settlement funds of customer household management. Cunguanyinxing splitting the management also needs through the accounts, due to the exercise of client funds Cunguanyinxing supervisory responsibility, this account can be characterized as "customer transaction settlement funds managed accounts."
From a legal relationship between the sequence analysis of customer transactions settlement funds, managed accounts are a derivative of the Securities and Exchange accounts, it should be opened after the Securities and Exchange accounts, and-one correspondence with the Securities and Exchange accounts are maintained and consistent.
Cunguanyinxing depository agreement, according to the requirements of the customer deposit and withdrawal instructions issued by the securities firms providing securities settlement instructions transaction-auditing and bookkeeping, breach of client securities transactions settlement funds, the principles of managed security screening and refuse to accept instructions .
3) Total of funds for clients of the accounts balance between effective supervision and management.
To ensure that customer funds are not appropriated, funds for clients of the general ledger balances should be a breakdown of the total with the balance of consistency, that is, a breakdown of each client's financial balance for both entities, and their corresponding funds; the same time, funds for clients of changes in the total balance on the ledger, there must be a corresponding change in account balance details corresponding to.
4) to the securities regulatory authorities, the report of third-party depository.
Cunguanyinxing should be based on the requirements of regulatory authorities to submit a third party depository on a regular basis to carry out state business. In the oversight process found errors and securities companies are not corrected within the specified time, Cunguanyinxing should also be timely to conduct a special report on the securities regulatory authorities.
In short, the "Securities Law" to define the basis for third-party depository business legal framework. On this basis, securities companies and Cunguanyinhang can develop in practice to achieve a wide range of business models.
