What are the risk prevention and control measures for margin financing and securities lending pledge?

The risk prevention and control measures of margin financing and securities lending pledge include: strictly examining the legality of collateral, ensuring the validity of pledge contract, specifically managing collateral, monitoring margin account and evaluating the value of collateral.

1. Strictly review the legality of the collateral: ensure that the pledged deposits come from legal sources and do not belong to illicit money or other illegal gains.

2. Guarantee the validity of the pledge contract: sign a clear margin pledge contract with the borrower, and the conditions, amount, duration and conditions for the pledge cancellation shall be stipulated in detail in the contract.

3. Specific management of collateral: deposit the deposit into a special pledge account to ensure the specificity of funds and avoid mixing them with other funds.

4. Monitor the margin account: Monitor the margin account to ensure the safety and integrity of the funds in the account.

5. Assess the value of collateral: Assess the value of pledged deposits to ensure that the value is sufficient to cover the loan principal and possible interest and penalty.