Protection Of The Investors' Interests Intransnational Securities Exchanges Under Indirectly Holding System

With the advent of scripless securities age, the applicable scope of traditional securities directly holding system is narrower and narrower. Yet, the applicable scope of securities indirectly holding system is expanding continually, and it is gradually becoming the dominant system. However, the legislations have many differences among different securities markets. This has caused that the interests of the investors in transnational securities exchanges are difficult to be fully protected. Under the circumstances,"Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary"was finally adopted in 19th Hague conference on private international law. But, this convention is mainly used to solve the applications of conflict rules. And it has not solved the differences among different countries'substantive legislations on Intermediaries holding securities. This will continue to effect transnational securities exchanges.In this case, UNIDROIT has finished 94th of"Draft Convention on Substantive Rules Regarding Intermediated Securities". The Draft Convention has provided how to protect investors'interests at large. These rules have built a framework for safeguarding the investors'interests in transnational securities exchanges, and also have provided the direction for the legislations in this filed for different countries. There is no doubt that it is helpful to the protection of investors'interests and the development of transnational securities exchanges. For China, domestic legislation on Intermediated Securities is still very imperfect, so it will hinder the internationalization of Chinese securities market. Most provisions of the Draft Convention do not have essential conflicts to Chinese current laws and regulations. This shows that the Draft Convention is suitable to our country. It is imperative for our country to organize senior experts and scholars to do researches into the Draft Convention and do adequate preparations for our country joining the Convention.