Research On The Crine Of Insider Trading

Insider trading is inevitable Companion of securities and futures markets. In the early development of securities markets, the law did not prohibit insider trading .In 1934, for the first time, Securities and Exchange Act of United States prohibited insider trading. At present, the law of all countries prohibit insider trading to protect the legitimate interests of the investors, to maintain the security and development of the Securities and futures markets. In China, securities law and criminal law strictly prohibit insider trading. But it is very hard to eradicate insider trading.Insider trading undermined the normal order of the Securities and futures markets, damage the legitimate interests of the investors. In recent years, with the progressive development of the Securities and futures markets in China, the crime of insider trading is rising."Open, fair and impartial"principle and the normal order of the Securities and futures markets were disrupted seriously. Prohibition of insider trading is based on the concept of fair competition.Compared to developed countries and regions, the legal system about prohibition of insider trading of securities and future is not perfect in china. Governance of corporation is not reasonable, lack of professional ethics, and other negative factors, it is not avoided to raise a lot of insider trading. In recent years, while the Securities and Futures regulators has a policy of governance of insider trading, increasing penalties for insider trading and the cost of insider trading of the illegal, but results were not satisfactory. Described social harm of insider trading and the need to prohibit insider trading and analyzed elements of insider trading. By compared foreign legislation with Chinese legislation on the prohibition of insider trading, discussed the defects of legislation about insider trading and make recommendations for legislation in China.