China's current basic legal system lacks general provisions on the particularity of commercial transactions. According to the laws of most countries, securities trading, like bill trading, does not apply to the general rules of the effective establishment of civil juristic acts, but should apply the principles of non-causation and abstraction that reflect the requirements of rapidity and security of commercial transactions. However, at present, a large number of specific rules of securities trading in China are stipulated by administrative regulations and departmental rules, and their contents are complicated. The following is a brief introduction to the centralized bidding rules of securities trading according to the trading procedures.
1. Open a trading account
According to the current laws and regulations, every investor who wants to engage in securities trading must first apply to the securities registration company to open a securities account, which can be used to engage in securities trading in the secondary market or online subscription in the primary market; Secondly, it is necessary to apply to a specific securities company (member of the exchange) to open a fund account to deposit trading funds, and the limit is set by the securities company itself. According to the above account opening contract, the securities registration company will provide securities custody, registration and delivery services for each investor; Securities companies will provide investors with trading agent, agent clearing and fund cashier services. Legislation has provisions on the identity confirmation procedures for investors to open accounts.
2. consignment sales
According to the current laws and regulations, every investor must entrust a securities company with membership to buy and sell securities; That is, first submit the trading instructions of investors (customers) to the securities company (or trading system); Securities companies input customers' trading instructions into computer terminals through their floor traders or trading systems; The trading instructions issued by the computer terminal of the securities company will be uniformly input into the computer host of the stock exchange, which will arrange the trading; After the transaction is completed, the securities company shall handle the liquidation, delivery and transfer procedures for its customers.
According to the current practice, investors' entrustment orders can take various forms such as written declaration, face-to-face declaration, telephone declaration and computer declaration. Each transaction instruction or declaration shall include the following contents: (1) shareholder account and password; (2) serial number and time of entrustment (referring to the entrustment time specified in the entrustment contract number); (3) Distinguish between buying and selling (0 means buying, 1 means selling); (4) Securities code (generally 4 digits); 5] Entrusted quantity (lots); (6) Entrusted price (market price or limit price); (7) The validity period of entrustment (presumed to be valid on the same day); (8) Customer's fund account number, ID number and other contents. Judging from the current laws and regulations, the rules of entrusted securities trading are actually dominated by civil agency law and contract; In this process, it is easy to cause disputes, and the exchange and trading members are in a state of disunity and non-disclosure.
3. On-site bidding
The client's trading instructions are entered into the computer mainframe of the exchange in chronological order through the agent of the securities company, and the transaction is made through on-site bidding. There are two ways to bid on the exchange floor: call auction and continuous bidding.
Call auction is mainly applicable to the opening price and daily opening price of securities listing. According to this bidding method, the computer host matching system only stores the trading orders that are not matched within the specified time (9: 10-9: 25) before the stock exchange officially opens on each trading day; When the market officially opens, the host matching system will process all the input bids and quantities to generate the opening price. The principle of closing positions by matching is: (1) Orders above the opening price and orders below the opening price can be closed; ⑵ Maximize the trading volume of orders at the opening price; (3) If the above opening price cannot be generated, the closing price of the previous trading day shall be the opening price of the current day.
After the end of call auction, the exchange will start the official trading on the same day, and the trading system will enter into continuous bidding until the market closes on the same day. Continuous bidding is a process in which buyers and sellers declare buying and selling continuously according to the bidding principle of price priority and time priority. According to this principle, if the purchase price at each time point is higher than or equal to the purchase price, the transactions will be conducted in price order; At each equal transaction price point, if there is a time difference between the orders, the first bidder will make a transaction in chronological order; If you can't make a deal, just wait for the opportunity to make a deal, and some will let the rest wait for the deal.
4. Liquidation and transfer
The liquidation of securities trading refers to the process that the buyers and sellers of securities receive and pay the trading funds through the trading clearing system after trading on the stock exchange through securities brokers. According to the current transaction clearing system in China, on the day when securities are traded on behalf of investors, securities companies should first conduct clearing business with the exchange after the market closes, and each securities company will pay off the difference in the amount of securities bought and sold according to the difference settlement rules; Then, each securities company will pay the amount of securities bought and sold by each investor it represents. However, due to the existence of the credit settlement convention on that day, the funds in each investor's account have been settled immediately when he gets the trading return of buying and selling securities; Among them, the seller of securities has obtained funds, which can be used to buy other securities, while the buyer of securities has deducted funds from his account and cannot overdraw to buy securities. This rule actually forms the T+0 system in fund settlement.
The transfer of securities transactions refers to the process of securities rights transfer and transfer registration by securities registration agencies after the securities buyers and sellers trade on the stock exchange through securities brokers. According to the current registration and transfer system in China, the securities registration company will handle the transfer procedures for investors on the next business day after the securities they buy and sell are completed, and provide the delivery slip. If the day is a legal holiday, the transfer date will be postponed to the next working day. This is the T+ 1 rule of stock transfer. According to this rule, securities bought on one business day can only be sold on the next business day.
According to the current laws and regulations, China currently adopts liquidation and transfer rules that are not completely equivalent to A shares. Among them, the settlement of B-share trading funds adopts the rule of T+ 1; The transfer of securities in B-share trading adopts the T+3 rule.
[Edit this paragraph] (2) Block trading system
China's current basic legal system lacks general provisions on the particularity of commercial transactions. All kinds of securities trading systems in civil law countries are actually bound by the general principles of commercial law, which is a system of autonomy of will under the restrictions of statutory law.
Judging from the securities trading systems in various countries in the world, there are three trading systems implemented by different exchanges: one is the direct bidding trading system, the other is the block trading system, and the third is the agreement transfer system; These three systems are applicable to different securities traders and provide legal tools for different types of transactions. According to the regulations of most national stock exchanges, the brokerage quotation system is usually used for block transactions; According to this system, any securities trader whose trading volume reaches a certain amount (more than 500,000 shares in China Shanghai and Shenzhen Stock Exchanges) can quote and buy in the block trading market through the on-site declarer of his securities broker without entering the direct bidding trading market, and his trading volume should be included in the total trading volume of the exchange on that day. In some countries, stock exchanges actually allow securities brokers to store and buy and sell securities reported by customers, so some scholars call this system "market maker" system. In fact, the brokerage quotation system is the earliest large-scale securities trading system adopted by NASTAQ market in the United States, and later adopted by new york Stock Exchange and other exchanges as the basic system of large-scale trading. It should be said that the block trading system obviously plays an important role in distinguishing different types of traders and transaction types. It not only distinguishes the different transaction types of retail investors and institutional investors (retail investors and wholesale investors), but also makes the trading rules more reasonable. But also effectively prevent institutional investors from buying and selling in the direct auction market, causing unnecessary market fluctuations and misleading retail investors.
At present, the stock exchanges in Shanghai and Shenzhen have stipulated the block trading system, and both stock exchanges have block trading counters. According to China's current securities trading rules, any stock trading with a trading volume of 500,000 shares or more can apply to the block trading counter for block trading. After receiving the application, the block trading counter will immediately store its uncommitted trading report, and then conduct unified matching according to the average transaction price of the stock on the day of trading at the end of the direct bidding transaction of the exchange. In other words, at present, China actually adopts the call auction system for block transactions. We believe that the current system adopted by China for block trading is very harmful. First of all, the centralized storage of block trading orders in this trading system actually determines the quotation factors in the brokerage orders, making the block trading orders only have formal and abstract significance, making the block trading orders only have the meaning of reporting the number of purchases or sales, but not the meaning of specific quotation. Secondly, this system actually denies the will autonomy of block traders, imposes the average price of centralized bidding transactions that has nothing to do with it on the parties, and denies the extremely complicated trading conditions in securities trading. Generally speaking, the block trading system currently adopted in China is actually a system with only the form of block trading and no block trading content; It only reflects the will of China's state-owned assets management department to pursue the high transaction price of state-owned shares, and in order to realize this will, it does not hesitate to sacrifice the most basic trading principles in the market economy.
[Edit this paragraph] (III) Financial futures trading rules
After Article 42 of China's Securities Law stipulated the bilateral market principle of securities trading, China's relevant systems and market construction developed rapidly. On September 8, 2006, China established the Shanghai Financial Futures Exchange, aiming at trading securities and financial futures. On April 8, 2005, the Shanghai and Shenzhen Stock Exchanges jointly compiled and launched the "Shanghai and Shenzhen 300 Unified Index", the basic trading tool for securities and futures; On March 6th, 2007, China promulgated the Regulations on the Management of Futures Trading, aiming at removing the obstacles of bilateral market transactions. It should be said that China's future securities and futures trading has been vividly portrayed. The basic forms of securities option trading, interest rate futures trading and exchange rate futures trading that China will continue to introduce in the future have been formed, and China has started the strategic reform from unilateral securities market to bilateral securities market.
1. Basic trading rules
According to China's "Regulations on the Administration of Futures Trading" and the basic experience of China's current futures market, China will implement the following basic rules for the upcoming securities and futures trading:
(1) trading rules of margin trading. According to this rule, China currently implements the 8% margin trading rule for securities and futures trading, that is, securities and futures traders can buy and sell securities and futures commodities at the face value of 8% margin; The law allows the commission merchant to increase the deposit of 8% on this basis. According to the convention of futures market, the margin ratio shall not exceed 15%. It can be seen that the rules of margin trading are twofold; On the one hand, the financial futures exchange will collect 8% trading margin from all commission merchant engaged in securities and futures trading, on the other hand, commission merchant will collect 8% or more trading margin from its customers.
(2) No liability settlement rules for the day. According to this rule, the financial futures exchange shall promptly notify all its futures trading members of the settlement results and complete the debt-free settlement with them at the close of the day. Futures trading members shall settle accounts with customers according to the settlement results of futures trading, and shall inform customers of the settlement results in a timely manner in the manner agreed with customers. If the customer has crossed the warehouse, it will constitute a debt to the futures trading member according to the contract, and the futures trading member has the right to require the customer to supplement the trading margin, and bear the responsibility for the exchange with its own funds.
(3) Mandatory liquidation rules. According to this regulation, when the margin of the trading members of the futures exchange is insufficient, they should add the margin in time or close their positions on their own. If a member fails to increase the margin or close the position by himself within the time specified by the futures exchange, the futures exchange shall forcibly close the contract of the member, and the relevant expenses and losses arising therefrom shall be borne by the member. When the customer's margin is insufficient, it shall add the margin in time or close the position on its own. If the customer fails to add the margin in time or liquidate the position by himself within the time specified by the futures company, the futures company shall forcibly liquidate the contract of the customer, and the relevant expenses and losses arising from the forced liquidation shall be borne by the customer.
(4) Market valuation rules. In connection with the above rules, China also adopts the daily mark-to-market rule in the practice of futures trading contract law. According to this regulation, futures brokerage institutions have the right to require all their customers to have fixed office space, fixed office staff and fixed contact telephone numbers around their futures companies; At the time of daily settlement, as long as the futures company contacts the customer in a fixed contact way, it constitutes a legal notice; At the expiration of the time limit stipulated in the contract, the futures company has the right to infer the customer's intention according to the terms of the contract.
(5) price limit rules and fuse mechanism
(6) Rules for reporting limit positions and large positions
(7) Risk reserve rules
(8) Mandatory lightning disposal rules
2. Clearing member rules
At present, China implements a hierarchical settlement system for futures trading. According to this system, the parties engaged in securities and futures trading are only trading members of the financial futures exchange, and any party who wants to engage in securities and futures trading must conduct it through a legally approved futures broker. The relationship between customers and futures brokers is a specific brokerage contract relationship. On the other hand, according to China's "Regulations on the Administration of Futures Trading", those who make daily settlement with financial futures exchanges must be their settlement members, and futures companies that do not have the settlement membership of financial futures exchanges must make settlement with financial futures exchanges through settlement members; The settlement members of financial futures exchanges are divided into comprehensive settlement members and special settlement members. General settlement members will settle accounts with financial futures exchanges with their own funds and at their own risk on behalf of all their customers, while special settlement members can represent a limited number of customers when settling accounts with financial futures exchanges. All settlement members of the financial futures exchange must pay the risk reserve to the financial futures exchange in accordance with the regulations, and bear the settlement guarantee responsibility to the financial futures exchange for the transactions of all their customers.
[Edit this paragraph] 3. Risk control rules
According to China's "Regulations on the Administration of Futures Trading", when there is an abnormal situation in China's futures market, the futures exchange may decide to take the following emergency measures in accordance with the authority and procedures stipulated in its articles of association, and immediately report to the the State Council futures regulatory agency:
(1) Increase the margin ratio;
(2) Adjust the range of price limit;
(3) Limiting the maximum positions held by members or customers.
(4) Suspending trading temporarily.
(5) Forced lightening;
(6) Take other emergency measures.