Legal Research On The Reform Of The Stock Exchange Company

The stock exchange is an industrialized commercial organization offering the intensive stock-exchanging services in essence. The early stock exchanges adopted the structure of the member system, which was characterized by the relationship between the ownership and the deciding and exchanging rights; the self-regulation of members with agreement and ignoring making profits. Restricted by the technological conditions and the non- automation of trade at that time, however, the member system was still efficient under the atmosphere of the insufficient competition and the close market. With the development of science and technology, the deepening of economic globalization and the relaxation of management of security markets in different countries. There have been great changes in the market environment of the stock exchange. Confronted by the increasing aggravated market competition, the traditional member system exposed several disadvantages gradually, for example, the low efficiency of decision and organization, difficulties in making immediate reaction to the market and coping with the fierce market competition. In order to survive and develop, the stock exchanges of all the countries in the world have began to change into the demutualization ones. Demutualization with the direction of making profits breaks out the monopoly of the member, which aims to pursue maximal profits and possess the flexible decision-making framework and extensive financing channels, so demutualization greatly adapts to the market competition. Although some people are afraid that there would appear interest conflicts between the commercial goals and the public supervising functions of the corporate stock exchange, the new system would function better for self-regulation and supervision whether from the motivation or the ability. With a series of advisable measures (including accomplishing the managing structure of the exchange, limiting the percentile of the stock shareholders have, coordinating the government supervision and stock exchange's right and scope of self-regulation, ect.), it is sure that thedemutualization can solve the roles conflict in the stock exchange.In our country the stock exchange system is similar to the member system, but its administrative color is strong and it is lack of the independence, which is totally different from the system abroad. Although the unique system of our stock exchange has made great achievements for the full-speed development of our stock market in recent ten years, it also revealed some weaknesses. In order to promote the market-based development of security market of our country and strengthen the international competitiveness, we should make the most of successful experiences in foreign countries and combine it with our own national conditions to change into demutualization then to meet the need of development of security market at proper time.