Study Of Insider Trading Regulatory Regime

Since the security market established, insider trading had been regarded as a kind of illegal trades, which the authorities all over the world supervise especially because of its great barmfulness. The security market of our country is very young, but insider trading is an often phenomenon. How to regulate insider trading effectively become the most important step of developing of our security market. The thesis focuses on how to complete the supervision system of insider trading in our country with using the experience of other counties for reference against the background of the concrete conditions in Chinese security market.There are two kinds of views about the control of insider trading that completely contradict. The "Regulation Theory" thinks that insider trading should be supervised strictly for the principle of "fair", "just", "open" of the security market, as well the development of the security market and the legal interests of the security investors. The "Deregulation Theory" thinks that insider trading can raise the efficiency of the security market, so it needn't be forbidden. They consider that the cost of the control is great but the result is dissatisfied. The dispute of two kinds of views is focused on the fair and efficiency, and this kind of dispute offer the important thought origin for the perfect design of the supervision system. It also brings the enlightenment that we should pay attention to the efficiency of the supervision while we safeguard the justice of security exchange.There are three kinds of regulatory systems to insider trading: Legal centralization system, self-discipline system, and middle regulatory system. The supervision to insider trading in China depends mainly on the government at present. The self-discipline system is auxiliary. This system doesn't work well because it emphasizes excessively that the government supervision is more important, and ignores the function of self-discipline. In fact, the most ideal regulatory system should be to depend mainly on self-discipline with government supervision as complement. Such a system will come into being through structuring three lines of defense composed by securities employees, securities dealers, and associations of securities dealers. The irreplaceable functions of the three lines of defense should be brought into play in the front-line of supervisionin order to realize the high-efficient supervision to insider trading.Under the rational insider trading regulatory system, the supervision system to insider trading can be divided into preventing in advance, controlling in the trade and investigating the legal responsibility after insider trading. Among them, preventing in advance depends mainly on forbidding Short Swing Transaction, and forcing the disclosure of securities information in advance. Controlling in the trade depends mainly on the technical supervision, the public supervision, and the mass media supervision. And investigating the legal liability depends on investigating the criminal liability, the administrative liability, and the civil liability. There are shortcomings more or less in practice of the supervision in China. Forbidding Short Swing Transaction have some loopholes because of which the system can't work well; The system of forcing the disclosure of the securities information hasn't been rigorously enforce in reality so that there are some shades and blind space in the disclosure of securities information; Shareholder Amount Index has extremely important function in supervision to insider trading, but China has not regarded it as the essential technical supervision means at present; The functions of the public supervision and the mass media supervise have not been paid attention to and confirmed in the form of law yet; The criminal liability of insider trading should be different according to the different situations of the criminal, and different grade can serve a deterrent function of criminal law; The regulation of confiscating the illegal income of insider trading in the administrative lia...