The Research On Insider Trading

Insider trading is only a minor part of security crimes. However, no mater in China or in other countries, both the regulation and punishment on insider trading are importantly placed. The reason is that the conducts of insider trading lead to the unfairness in the security market, in addition, they weaken the efficiency of security market. Their harm are very obvious and serious. Therefore, in each country, the governess of insider trading composes one of the most important part of the governess of the crimes in Security market.In China, the security market is a newly developed one. With the development of the security market, the violence of regulation and criminal offence in the security market are becoming rampant. Among which, insider trading plays as badly in the market as cancers for human body. In fact, it tends to be more and more unbridled. If doing research further, we will know that it is the lack of effective restraining of the law system, especially for insider trading , it is seldom for the criminal law to restrain such crime. Actually, since 1997, when the accusation of insider trading was added to the amended criminal law , there has been no crime declared truly in the name of insider trading. Therefore, it is meaningful to do more research on insider trading bothin theory and in practice.The amendment of criminal law rectified the 180th clause of the criminal law in 1999, which made the contract market become a new areaof insider trading. However, the regulation of insider trading itself has not been changed in the amendment. Although there are many differences between the security market and the contract market, the conducts of insider trading in these two markets are similar to each other. Also, a lot of acts of insider trading which are the most harmful have appeared mainly in the security market. Therefore, the paper concentrates on the security market to study in details"the crime of insider trading by way of comparing and summarizing, and so on.This paper contains five chapters. In Chapter 1, the outline of this paper, the author introduces the concept of insider trading, and the process of regulating such crime in both China and other countries as well. In Chapter 2, making an inquiry into the theory and fact basis of insider trading , and by analyzing the comparison between the regulation on insider trading by the criminal law and that by the security law , the author approaches the necessity and reasonableness of the intervention of criminal law. In Chapter 3 and 4, through the in- depth analysis of the constitution of insider trading and of the conviction of such crime , the author emphasizes how to apply such crime and relevant legal liability correctly. In Chapter 5, the author goes deep into the way to consummate the legislation of insider trading in China.It is without doubt that, in China, if the legislation of insider trading can be bettered and if it can be executed thoroughly, besides, if the measures guarded against such crime can be actually effected, the number of insider trading will be deemed to decrease sharply, thus help our security market to develop stably and soundly.