Study On The Civil Liability Of Front Running

Supervision of law enforcement legislation is lacking that led to frequent Front running. Front running means that fund managers are purchased the stocks by individual finances before they buy the stocks by company finances. They sold all their own stocks when upward price trend. There are three reasons. The first one is conflict of interest between the fund employees and fund holders. The second reason is ineffective supervision of fund company. The last reason is lack of morality and legal sense what fund employees should have. Front running still destroyed our securities market's three principle. It included harming the interest of minority shareholders, lashing existing market and influencing the development of market. In regulation "Front Running" process, our country is still facing the various problems.First legal lack of "Front Running" concerned regulation that it is in a state of by the regulation. Our supervision and law enforcement means weakness, compared with foreign countries to "Front Running" punished light. It is lack of regulation there are various, will lure at present our country securities market "mice are required. Management of Front Running is in a difficulties .First ,law has not to provide about Front Running. Second, control of our country is so bad .Third ,punishing of Front Running is so little.In China, the regulation of Front Running is administrative and criminal means. There is a little regulative means of civil. We should add the regulative means of civil. So we should judge nature of Front Running. Because of no agreement, Front Running is intrusion.The instrusion is made up of four parts. Frist is illegal behavior. Second is tort subject. Tort subject of Front Running is fund practitioners. Third is fact of damaging. Fact of damaging is illegal gains. The last is causal relationship. Causal relationship should be established of presumption.In civil compensation, victims are investors of fund company. Our country Lawsuit system is inadequate. We should improve it. In compensation, we should share compensation according to the victims. Even though Front Running can be disappear in a short time, it will reduce after using means of civil.