Study Of The Crime Of Trading On Nonpublic Information

There are many difficulties in legal application on the crime of trading on nonpublic information. It is necessary to analyze the normative theory and applicable boundary of the crime of trading on nonpublic information and bring forward blue print to solve relevant difficult practical problems so that the criminal theory can provide some useful references for criminal justice and perfection of criminal law interpretation and legislation.The legal interests of the crime of trading on nonpublic information include financial trading orders, capital market investors'rights and interests and the professional faithfulness of financial industry agents. The nonpublic information means the information that is not accessible to public, has significant influence on the relevant securities and futures'prices and is regulated by the financial institutions, regulatory agencies and industry guild according to rules, for instance, the information about financial investments, technique analysis, supervisions, regulations, industrial news and policies. Making use of nonpublic information can be presumed on the basis of a series of circumstance evidence integrated into evidence chains. If the actor who take advantage of his profession to obtain the nonpublic information and inform or imply others to trade on relevant financial products, meanwhile the later do not carry out the trades, the actor commonly can not be accused of the crime of trading on nonpublic information. It is not needed to prove leaking the nonpublic information in order to construct a basis composing inform or imply others to trade on relevant securities and futures. Only natural person limited in two types, financial institution agents and regulatory agency official, can be accused of the crime of trading on nonpublic information. Trading on nonpublic information is a crime of willfulness because the nature of this crime is impinging the fairness of financial market through fraud and illegal devices.Deregulation in the crime of trading on nonpublic information means violating laws, administrative statues, department regulations, state policies and national industrial criterions. It can be considered as relevance if the actor trade on some securities and futures directly corresponding to the nonpublic information or substantially correlated according to the financial market common sense and the interests gained from the trading obviously against the fairness guidelines. It is needed to rule out the empty index such as"multiple trades"and"other situations"from the system of"serious scenario"cognizance standard in the crime of trading on nonpublic information. Other measurable criterions such as financial market orders and investors'interests should be set up into the system of"serious scenario".It is indispensible to modify relevant laws, administrative statues, and other regulations, the basis to estimate deregulation, in a step by step manner, in order to exert all the functions of the crime of trading on nonpublic information completely. Meanwhile, it is needed to enlarge the qualification bound and regulation area to constitute the crime of trading on nonpublic information according to the development stream of financial transaction so that criminal law can protect capital market's function of allocating resources reasonably and healthy development.