On The Stock Exchange’s Power Of Dealing With The Abnormal Transactions

Abnormal transactions have an impact on the securities market. Whether investors, securities companies, or the stock exchanges, are subject to abnormal transactions. Stock exchanges should be responsible for maintaining normal trade order and the smooth progress of the Securities and Exchange. As the organizer, the stock exchange has natural technology, human resources and information superiority to respond quickly to abnormal transactions and take timely and effective measures to intervene the abnormal transactions. However, stock exchanges act both the organizer and supervisor. When the Abnormal transactions happens, the stock exchange’s two roles will be in the conditions of conflicts. Therefore, there has been considerable controversy in practice on the exercise of the right to deal with abnormal transactions. In this paper, the author will focus on the right to dispose of abnormal transactions of the stock exchanges.Legal Studies on the stock exchange of the right to deal with the abnormal transactions have multiple angles. This Paper selects several important theoretical issues and practical problems related to the stock exchanges abnormal transactions right to dispose as the research priority. The definition of the abnormal transactions, the source, nature, external manifestations, responsibility exemption, the powers of external constraints and so on are all included. The whole paper, divided into five chapters except of the Introduction, has a total of about120thousand words.Chapter one:"The Definition of the Abnormal Transactions and Intervention of the Stock Exchanges". This chapter focuses on the definition of abnormal transactions, the positioning of stock exchanges on the abnormal transactions, the mode and appropriateness of the intervention of the stock exchanges on the abnormal transactions.The paper holds that the abnormal transactions are no longer confined to the individual or part of the stock transactions participants. Once the abnormal transactions arise, the entire stock market will be impacted. Disposal of abnormal trading, the stock exchange, There is an intensive relationship for the stock exchange both as a trading services provider and regulator. The current legislative provisions on disposal of abnormal transactions is lack of systematic design. The relevant law is too narrow and not rigorous from a legal perspective. Due to the diversity of abnormal transactions, the stock exchange shall take different measures according to the different types of abnormal transactions. The stock exchange must follow the principle of the effective disposal of unusual transactions, the principle of specific issues with specific measures, and the principle of appropriate measures to deal with.Chapter two:"The Structure of the Right to Disposal of the Abnormal Transactions". This chapter focuses around the source, nature and the external manifestations of the right of the disposal on abnormal transactions.The paper holds that the stock exchange, as a self-regulatory organization, the right to deal with the abnormal trading is neither a public power nor a private right from the ordinary meaning. This is more suitable for the power to be defined as a social power. It is a right from the relationship between the stock exchange and the administrative regulatory authorities. It has an inherent and derived character. Measures of the current laws and regulations and exchange rules on the disposal of unusual transactions are too simple, and relevant measures to deal with the unusual transactions is not clear enough. Disposal of unusual transactions is lack of dynamic design. This is not conducive to the disposal of the unusual transactions.Chapter three:"The Operation of the Right to Disposal of the Abnormal Transactions". This chapter focuses on the operation principle of the right to deal with the unusual transactions, and securities administrative custody of convergence, the internal control of the stock exchanges.The paper holds that the power on disposal of abnormal transactions must follow the principles of due process and the principle of proportionality, the principle of immediacy. In terms of disposal of unusual transactions, there is a certain degree of absence of the securities administrative supervision department, and there is a fracture between the stock exchange and the administrative supervision department. There is an urgency on building a sound relationship between the administrative regulatory authorities and the stock exchanges in the disposal of unusual transactions. The internal control of the stock exchange does not have a professional, synchronization, initiative and other advantage compared with the external control. Establishment of internal control can promote abnormal transactions disposal right of the stock exchange reasonable and legitimate. The quantitative disposal standards, disposal of power decentralization, and the assessment of the exercise of power normalization are the important aspects in building the internal control.Chapter four:"The Responsibility and Immunities of the Stock Exchange in Unusual Transactions Disposal". This chapter focuses on multiple identities and imputation principles of the stock exchanges, the administrative responsibility and civil liability that the exchanges shall bear and exempt.The paper holds that there is an equal relationship between the stock exchanges and the market participants, when the stock exchange is a trading service provider. Its primary responsibility shall in accordance with the provisions of the Civil and Commercial Law. There is an unequal relationship between the stock exchange and the market participants, when the stock exchange is a supervisor, the Stock Exchange is a "quasi-governmental" organizer. Stock exchanges with public agencies nature, in the performance of the functions of market supervisor must be exempted from certain responsibilities. As a provider of securities trading services, Stock exchanges should adhere to the "intent or gross negligence standard" in term of bearing civil liability. As a supervisor of securities market, Stock exchanges should adhere to the "legitimate purpose standard" in term of bearing regulatory liability.Chapter five:"The External Constraint Mechanism of the Power of Stock Exchange on Abnormal Transactions Disposal". This chapter focuses on the reasonableness of the external constraints on the power of disposal on unusual transactions, and the legislative, administrative and judicial control.The paper holds that our internal control mechanism of the stock exchange has not yet been established, internal control is insufficient on constraints the abuse of the power of disposal on abnormal trading. As competition intensifies and the trend is increasingly evident, the motivation to pursue business interests in the stock exchange is increasingly intensified. From the legislation, there is a definition on the scope, exercise, and exercise program of the power of disposal on the unusual transactions. From administrative control, Administrative organ shall supervise the powers set and exercise according to the legal provisions of the exchanges. In the area of judicial control, The judiciary should follow the inner relief principle of exhaustion, cautious intervention principles and legitimacy rather than the principle of rationality.