The Studies About The Causation Of Civil Liability Of Insider Trading In The Securities Law

Insider trading, an illegal behavior in securities market, deviates from the basic principles of the civil law and securities law. Because of its negative impacts on the trading order and investors, insider trading is prohibited by various countries. Foreign countries depend on administrative, civil and criminal responsibility to regulate Insider Trading; however, China neglects the importance of civil responsibility in regulating Insider Trading. It has been thought that the civil liability for insider trading should be founded to compensate the investors and prevent their damages. Lake of civil liability can be ascribed to lots of reasons; undoubtedly one of the major reasons is ambiguous causality criterion leads to juridical difficulty.The article hereto supplies the theories to instruct the practice by giving the Causation rule in judgment. Base on the reason of protection of investors, take the way of norm analyze and comparative study, the article begins with analyzing the nature of Insider Trading civil liability, uses the two legal system's dual Causation theory for reference, links up with Causation development of United States, brings up a essential thought of building our country's Insider Trading Causation theory: uses the dual Causation as framework, divides it into factual cause and lawful cause, in each of the cause give the specific rules of proof. On the basis of above thoughts, the article is divided into three parts:Chapter one, firstly give the economical and jus-philosophic analysis on the harm of Insider Trading, and addressing the necessity to restrict. Secondly, compares the regulations in and out of China. At last, analyzes the nature of Insider Trading's civil liability, and draw the conclusion that the liability is tort liability.Chapter two, introduces the development of two legal systems' Causation, and pay close attention to distinguishing Insider Trading Causation theory of United States. In the process of analyzing, finds out the referable parts.Chapter three, points out that the Causation in China Security Law is unable to protect the investors. Addresses that we should make reference of other countries' legislation experience, gives a dual cause Causation standards and testification liabilities of two parties in litigation to make the judgment easier and clearer for the true value of the Causation.