Everbright Securities Oulong Refers To The Civil Liability Of Insider Trading

Fat Finger from EVERBRIGHT SECURITIES caused a huge shock for the China’s security market and futures market in August 16,2013.Finally,CSRC characterized the acts of Loss Averse as illegal.The most important is that there is no timely fulfill information disclosure obligation in futures market to hedge identified as insider trading.CSRC also said this is a new case which is different from traditional insider trading.However,recognized it as insider trading compliance with the law.Insider trading is illegal trading transactions triggered by the rapid development of security market.The subject who is master of insider information,whether it is legal or illegal.People who divulge the insider information, buying and selling securities related to insider information, or suggest others to buy or sell the securities before the disclosure of the insider information.Insider trading is an illegal behavior, because the insider informations always have an effort on the price of securities,and are directly correlation with the interest. Insider information,the range of insider traders and forms of insider trading are the three essential factors which to judge insider behavior.Insider trading is a special infringement in civil liability.Plaintiff of insider trading are nearly impossible to get the advantageous evidence because of the complication of the security market and the factors to the fluctuate the price. Furthermore we are hard to prove the mistakes of the ideological aspects with the testimonies, so to certify the subjective faults of the insider trader is scarcely possible.Therefore, civil liability of insider trading is taken imputation principle of presumption of fault.This can reduce the plaintiffs burden of proof.In order to better protect victims of investors and encourage them to seek reasonable compensation by the way of civil action.should be given opportunities for burden of exemption.The defendant could provide evidence by themselves to prove their innocence, which is also helpful to protect the civil rights of the defendant and make both parties get the equal rights of relief. A Chinese court would require the administrative punishment book or the criminal judgment by the CSRC before the acceptance of insider trading civil compensations.The article’s background is EVERBRIGHT SECURITIES fat finger.Analysis civil liability in this case and to improve some suggestions about civil liability of insider trading.The article falls into four parts.Chapter one mainly introduction background of the case.Chapter two mainly analysis insider information,the range of insider traders and forms of insider trading.Then describes the current situation of securities and futures markets in insider trading.Finally,combined with some of our laws to analysis of the reasonableness of the case.Chapter three is the focus of this article.Including the fact of damage, causation, subjective fault, defenses.Chapter four mainly analyze whether the victim can claim civil damages remedy.Chapter five complete discussion of civil liability for insider trading.Including improve standards of identification about insider information,civil damages remedy, improve defenses insider trading.