Micro-financing into two brokerage melting range
broker "second season" two financial checks are ongoing, this inspection in addition to the traditional margin trading business, also includes the stock collateral repo, conventions, repo and stock exchange of rights in proceeds and financing capital intermediary business. Industry sources say, means the focus of regulatory supervision of risk credit risk mainly in the broker's own funds, rather than financing behind excessive market risk.
stock mortgage repo, refers to the eligible funds into party (hereinafter referred to as "integration") to stocks or other securities held by the pledge, to eligible funds thaw out (referred to as "melt") into the Fund, and decided to return in the future, the disarmament pledge transactions. Due to the integration of customer equity financing funds there are no use restrictions. Therefore, pledged to buy back the business more than double-melting business has a wide customer base, more space.
so-called stock return swaps, which brokers provide over-the-counter contracts, customers and brokers after signing swap agreements, in accordance with the agreement on specific shares of the exchange proceeds with the fixed-rate customers and brokerage counterparties each other. Stock return swaps and equity financing and similar, is the return swap and repo pledge to replace this operational flexibility. In General, more suitable for use this way to finance large customers, costs and similar loans, and sometimes additional other letters.
researchers said two melt was relatively stable, concentration of risk diversification, is the percentage of asset financing business increased. Large mortgage repo or swap the right to return this kind of business is often pure financing business, does not restrict the use of funds, similar to bank credit.