On The Legal Regulation Of Stock Index Futures Market Manipulation

The Stock Index Futures will show up in China, how to regulate it became the social focus. Whether the market manipulation would take place in Chinese Stock Index Futures market, and how to regulate it by law in China, Science of Law must give the answer.Although scholars had different viewpoints, but we can find that the stock index futures market in China meets the market manipulation requirement completely based on the research of theory explanation, overseas market experience and Chinese market environment, and it would happen in China .Because the nature of Stock Index Futures is fictitious economic which means price can be controlled; bounded rationality lead to investors may be tempted into joining the trading; and CSI 300 Index also may be controlled by some illegal person in certain situations; market manipulation also took place in other countries which prove the Stock Index Futures may be manipulated in immature markets. And we can find that information manipulation coordinated by other trick of manipulation may be the main path of the manipulation of SIFM (Stock Index Futures Market) in Chinese market.Manipulation of SIFM will destroy the economy and threat the state's financial security. It is market failure which must be regulated by government. But government would also appear 'government failure' because of various situations when it regulates market, so we need law which can restrict the behavior of government.It is a key premise for actualizing effective supervision on SIFM to clearly define manipulation of SIFM legally which comprises identifying its conception and constitutive requirements. And the difference between manipulations of SIFM with other markets must be noticed.Although China has regulatory and legal system which can prevent the Manipulation of SIFM, but there are still some flaws .so we need more perfect legal system to prevent the Manipulation of SIFM, and reinforce the supervision of information in SIFM, so government must have power to supervise information in SIFM which authorized by law.