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Self-regulatory Mechanism To Regulate Insider Trading - The Chinese Wall System

Posted on:2004-01-05Degree:MasterType:Thesis
Country:ChinaCandidate:J PanFull Text:PDF
GTID:2206360092490013Subject:International law
Abstract/Summary:PDF Full Text Request
Chinese Wall is a series of internal procedures and policies made by the multi-service securities firms or the financial company group in order to control and separate the flow of information among different departments in the company. This article brings forward some suggestions to further amendment of the Securities Law of China through investigation of concept of Chinese Wall and causes for existence of Chinese Wall. The article includes three parts: the first part investigates the concept, causes and bad effect of insider-trading and points out that insider-trading is main cause for establishment of Chinese Wall. What's more, it introduces multi-service firms or financial company group and the active effect of their existence and discusses about conflict of interests occurred in multi-service securities firms and points out that Chinese Wall is a better choice to solve the problem of conflict of interests. The second part traces back the history of Chinese Wall and introduces the policies and some relevant measures of Chinese Wall. The main objective of Chinese Wall is to prevent internal flow of insider information and be used by multi-service securities firms as defenses for sue of breach to fiduciary duty. But Chinese Wall, as a self regulatory policy, also has some inevitable shortage. Even though, with the development of securities market, Chinese Wall develops continuously. The third part is to the situation of China. The development of Chinese securities market asks for establishment of Chinese Wall. Moreover, China has the experience and exploration in the self-regulatory mechanism like Chinese Wall. In the future, Chinese securities regulatory administrative institution should admit the legal effect of Chinese Wall and make the some relevant supervising system.
Keywords/Search Tags:Chinese Wall, Regulation of Securities, Insider trading, Conflicts of Interests
PDF Full Text Request
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