Research On Causation Of Tort Of Insider Trading In Securities

The impact of Fintech on securities trading is reflected in asset securitization and structural reform of financial services.In the process of asset securitization,the types of securities are enriched,and in the process of structural reform of financial services,high-frequency trading came into being.With the development of new types of securities,there are some phenomena,which lead to information asymmetry,such as low transparency of underlying assets,long securitization chain and complex structured finance services.And legal risk remains.The invariability of inside information,the diversity of its forms and the variability of its information advantages enrich the types of inside trading,and at the same time raise the problem of incommensurability in the identification standard of the causality of the insider trading tort.This paper proposes alternative criteria for the causation of insider trading in order to adapt to financial innovation.The main line of this paper is that the types of securities insider trading tort affect the identification standard of causality.This paper explores new ways to determine the correlation between cause facts and effect facts according to the theory of insider trading and causation.On the one hand,according to the theory of insider trading,this paper,proposes the "endogenous" legislative model to explore a new way to determine the causation of insider trading adapt to asset securitization types and trading modes,based on the influence of the development of fintech on the connotation and extension of securities trading.On the other hand,this paper offers a conceptual framework for judging the legal causation in insider trading tort.From positive perspectives,the insider trading norms apply directly to the underlying securities;and from negative perspectives,the paper introduces a new framework to meet the legal challenges of the new types of insider trading to theoretical framework underlying the legal causation of insider trading.Chapter 1,The Legislative Framework of the Causation of Insider Trading in China.Section 1 is about the norms and theories of the insider trading in developed countries,and the shift in insider trading norms should be supposed.Section 2 analyzes the theoretical dilemma of causality,its lack of legislative logic and the dilemma in judicial practice.Firstly,it points out that common theories of insider trading are inaccurate and incomplete.On the basis of this,this paper analyzes the legislative and judicial practice of the inversion of the burden of proof of causality in securities fraud litigation.Section 3 redefines the value basis of the insider trading norms and reaches a consensus on the value basis and the level of interests in causal relationship judgment.Section 4 is about the theoretical response to insider trading.The paper combines endogenous theory and functional legislation to reach theoretical consensus,analyzes the "externalization" to "endogeneity" of technology and law to reach institutional consensus,and finally concludes that the causation in insider trading tort should follow the "endogenous" legislative model.Chapter 2 The Categorization of Insider Trading.This chapter discusses the typologies to understand the particularities of insider trading tort in various securities.First of all,according to the specific contents,insider trading happens in equity and derivatives markets.It is typical for insider trading in derivatives markets,as for derivatives by design appear to subvert insider dealing doctrine and the traditional theory.Secondly,insider trading also happens in crypto asset and capital markets.This kind of classification is to solve the problematic ductility and foresight of law.At last,insider trading happens in traditional and high frequency trading market.The vitality of law lies in its consistency and inclusiveness.From the perspective of the consistency of law,this paper analyzes the unfairness caused by the heterogeneity in the judgment of the causation of insider trading in derivatives markets.From the perspective of the inclusiveness of the law,it explores the way of the causation of the insider trading in crypto asset market.From the perspective of variability of information superiority,this paper analyzes the identification path of structural insider trading causation.Chapter 3 The Characteristics of the Causation of Insider Trading.This chapter focuses on the particularities of insider trading tort to discuss the characteristics of causation of securities insider trading tort.And it focuses on the particularities of the causations of insider trading in equity markets,from the perspectives of increasing in subjective cause in fact and the subjectivity of objective cause.The chapter analyzes the necessity of the consequences of insider trading.Then,this chapter illustrates the subjectivity of legal cause from the aspects of tortious liability of omission,multiple cause,intervening cause and pure economic loss.The uncertainties of the consequences and the complexities of causation are still under discussion.Based on the particularities of the causations of insider trading,the following two chapters are specific to criteria for identifying the causation of insider trading.Chapter 4 The Perfection in the Causation of Insider Trading.This chapter challenges the framework of the insider trading doctrines,and then suggests that the plain-meaning rules should be adopted in the application of the doctrines.It coincides with the purpose of protecting the rights and interests of investors.The upshot of the study is to reduce the standard for the judgment of the causation of traditional securities insider trading.Chapter 5 The Analytical Framework for the Judgment of the Causation of the New Types of Insider Trading.This article develops an analytical framework for strategies that seek to judge the causation of the new types of insider trading.The chapter introduces the framework to disentangle the new types of insider trading from the traditional ones.Section1 offers the criterion of derivatives insider trading.Firstly,the chapter illustrates the basic structure of the causation of derivatives insider trading.It explores new ways to the value commonality and the method of proof.The introduction of reducing of the criteria for the judgment and the proof of derivatives insider trading could strengthen the positive effects.Based on the compliance of the underlying technology and the self-consistency of the legal system,this chapter puts forward an "endogenous" legislative logic for the causation of insider trading of crypto assets.From the perspective of the external integration of insider trading doctrines,the chapter analyzes the causation of insider trading of crypto assets.This chapter adopts a "laissez-faire" legislative model for structured insider trading.Section 3analyzes the basic structure of causality of structured insider trading,and puts forward that judgment of causation should be based on the no-fault liability.