The Analysis Of Security Market Regulation

Security market has played an important role in modern economic system since its birth, and studies on security market came into being accordingly. But most of these studies are limited to two aspects: one is macroeconomic analysis of the importance of security market in economic development, the other is microeconomic analysis of price formation and fluctuation in security market. As for studies on security market regulation, there is almost nothing. But for most developing countries, it is the government who initiates the security market, which makes detailed and appropriate theories of security market regulation a necessity to act as theoretical guide for the government. My thesis is based on both the theoretical and the practical needs. Below is the outline of it:Chapter one is a analysis of the necessity of security market regulation, which supplies a solution to the question that why the security market should be regulated. Generally speaking, theories of security market regulation originate from public interest theory. So at the opening of this chapter, there is a brief introduction of public interest theory, followed by its adaptation in security market regulation. The argumentation on manipulation in security market, asymmetric information and externality leads to a conclusion that regulation is indispensable in order to achieve an efficient security market. Then this chapter analyses the aim, the rule, the means and the content of security market regulationChapter two studies the patterns of security market regulation, and supplies a solution to the question that how should the security market be regulated This chapter discusses the strength and weakness of each pattern and their adaptation in different countries as well as the inclination of identity in security market regulation pattern among different countries. As a conclusion, this chapter points out that whatever pattern a country follows, it should pay attention to both the importance of self-regulation and government regulation.Chapter three recalls the development in security market regulation pattern in China, and investigates the problems in current security marketFinally, chapter four provides some advice to improve the efficiency of regulation.