Comparative Study On The Civil Liability Of Insider Trading

Insider trading could destroy the confidence of investors, and pose huge negative effect on the efficiency, liquidity and the optimal allocation of capital resources. It has been treated as the poison of the capital market and the object of the supervision from the government. Since the establishment of the Chinese Insider Trading legal system, the Chinese government has prosecuted over hundreds of cases of Insider Trading, including criminal and administrative cases. However, there is still no civil suit brought against the Insiders. The reason is that the law of civil liability of Insider Trading is just a principle which lacks the details to execute the law. Thus, this thesis will conduct study on the civil liability of Insider Trading.Except for the introduction and conclusion, this thesis consists of three parts: This first part is the general introduction of Insider Trading. In this part, the author conduct comparative study on the definition of Insider Trading and material information, basing on the law of the US, European Union, Germany, Japan, South Korean, and Taiwan; and then the author compare Insider Trading with the other fraud in stock market.In the second part-the elements of the civil liability of Insider Trading-the author conducted comparative study on the regulating theory of the Insider Trading of the US, and made some suggestion on the regulated theory of China; and then, the author discussed the elements of the civil liability of Insider Trading-negligence, damage and causality; finally, the author made comparative study of the defense of Insider Trading.The third part is the suggestion for the legal system of civil liability of Insider Trading in China. The author first discussed the defects of the current law on civil liability of Insider Trading of China; and then made suggestion on the qualification of the plaintiff, the jurisdiction, the theory of liability, the scope of the defendant, the definition of material information, the way to calculate the damage etc. Hope this thesis may offer different thoughts on the civil liability of Insider Trading and contribute a little to the building of the law on civil liability of Insider Trading of China.