The Study On The Supervision Legal System Of Securities Credit Rating

The Contemporary significance of the securities credit rating is an institutionalized state formed by the independent credit rating agencies which evaluate the credit situation of the bonds and the bond issuers by using the collected relative information, and it is a complex professional process combined by the subjective evaluation and objective evaluation. As a system, securities credit rating system occupies a key position in the process of securities issuance and circulation, and is becoming the gambling basis point of different parties and other stakeholders in the stock market, which results a series of legal issues.The design of credit rating system will have a significant impact on the different capital market parties, other stakeholders and the whole community. The allocation of the main rights and obligations of different parties reflects the relationship between the party autonomy, government intervention and legal control. In the market economy, the nature of the securities credit rating is a measure of the possibility and willingness of debt refunding of the capital market debtor. Securities credit rating products have the properties of public goods, but they are supplied by those credit rating agencies that commonly adopted corporate market players. This would generate public supply shortages and interest conflicts, and need to regulate it through the design of legal system. In short, the financial innovation needs the system innovation, and the change of law is the core of system innovation.The structure of this article is as follows:The first chapter summarizes the basic theory of securities credit rating and introduces its content,extension and function, and regards the market failure,government failure and incomplete law as the basic supervision theory.The second chapter analyzes the interest conflicts in the securities credit rating, and points out that the various conflicts may cause harms to the social order and lead to the variation of legal relationship of securities credit rating. Although many countries have adopted certain measures to interest conflicts, they still can not effectively prevent the neutrality of securities credit rating agencies from being affected by the interest conflicts.The third chapter shows the internal management problems of the securities credit rating agencies that has been exposed in the subprime crisis, and reflects these problems from the credit construction of credit rating agencies, establishment of sound rules and regulations, strengthening the supervision of employees'suitability and construction of information processing system.The fourth chapter makes a choice of China's supervision approach by comparing the changes of supervision system between the U.S. and EU securities credit rating agencyThe fifth chapter proposes some suggestions about completing our country's securities credit rating supervision system based on the analyses of our country's current satiation of securities credit rating and the targeted problems.