The Securities Industry Self-regulatory Mechanism Study

Self-regulation is a obvious feature of market economy. The rules ofself-regulation and the law constituted the regular system of marketeconomy. So the system of self-regulation has been gradually developedin the process of constructing our socialist legal system. Fully affirmingthe self-regulation in the securities industry, this article discussed therationality, the necessity as well as the feasibility of it under the tendencyof the securitization of market economy, proposed that self-regulation isessence and the most foundation constitutive condition for the stabilityand advancement of the securities industry. And the national legislatureand the government supervisor must fully respect the securities industry'sself-regulation organizations about their right to make by-laws, to solvedisputes and to self-regulate other affairs. At the same time, for balancingthe conflict between the industrial benefit represented by theself-regulation organizations and the social benefit, both the governmentand the society should carry on discrete and essential intervention to theself-regulation organization's activity. Therefore, the activities whichmight damage the securities economy should be properly regulatedthrough the image building of the self-regulation organizations. Thisarticle mainly includes the following aspects; 1. The self-regulation system is indispensable for the development ofthe securities industry in an autonomy market and diversified society. The self-regulation is the symbol of the moral rationality of thesubjects in the securities industry. The self-regulation is the effectivechoice to improve management efficiency and decrease the cost oftransaction in securities industry. What's more, the self-regulation couldhelp prevent the moral risk in securities industry and insure the smoothoperation of market mechanism. At the same time, the self-regulation insecurities industry also conforms to the need of the harmoniousdevelopment of a multiplex society. 2. Through the comparison research, find the effective system ofexpediting the construction of the self-regulation system in securitiesindustry of our country This article carries on the inspection to the main patterns of theself-regulation system in securities industry around the world, throughwhich conclude how the self-regulation develop with the securitieseconomy. The writer hope that the comparison research be helpful tomake up the insufficiency of the fundamental research in this aspect, toform the suitable theory system of self-regulation in securities industry ofour country as soon as possible, and be advantageous to melt as soon aspossible into the tide of the internationalization of securities industryunder the tendency of global economy integration, to accelerate ourconnection with the world economy. At the same time, based on theinherent laws of market, we could achieve "stone his mountain mayattack the jade" through the comparison, that is, we could find a short-cutin the practical field for the self-regulation in securities industry in ourcountry. 3. To design the self-regulation system of securities industry, thecharacteristic of the industry and the functional difference betweendepartments should be considered. The securities industry is an industry with especially high risk. It isthe polymerization place of the risk of entire economy system and the riskof certain part of the society. A well-designed self-regulation system andit's strict execution directly determine how to manage the risk ofsecurities industry when we enjoy the economic and social benefitsproduced by it. This issue is discussed in this article through threeaspects—the stock brokers, the securities exchanges and the associationsof securities industry. 4. The realization of self-regulation in securities industry must relyon the construction of effective interior mechanism and good socialimage as well as the cultivation of society's autonomy culture by theself-regulators themselves. For the realization of self-regulation, the self-regulationorganizations' ind...