Analysis Of System Of The Burden Of Proof In Insider Trading In Security Market

With the fast development of China’ s securities market, the insider trading hasincreasingly become the poison that damage the order of the securities market greatly,and compared with multiple behaviours of the insider trading, the punishment in thiscase from administrative and judicial branches is so still far lagging behind. As for thereason related,it is, according to the author, the difficulty encountered by judicialdepartments to prove the insider trading practice. This article begins with the reasonwhy it is difficult to prove insider trading, through analysis the substantial harm andinfluence that insider trading has brought to our country’s securities market andmacroeconomy, and difficulties the judicial practice has faced during punishing theinsider trading behaviour. In addition, it also analyzes why perfect burden of proof oninsider trading can play an important role in controlling the spread of insider trading,explores the main reasons why it is necessary to perfect the burden of proof on insidertrading. This article compares the practical situations in which American use its strictlaws and perfect system of burden of proof of insider trading to hit and punish theinsider trading behaviour, and combined with the situation of our country, the legalsystem, legal tradition and securities market situation so as to discusses how to perfectthe system of burden of proof on insider trading in our country, as to be favorable fordiscipline insider trading behavior, punish insider traders, maintain the safe operation of the stock market, and create a good investment environment for investors.The first part of this article first clarifies the definition of the burden of proof,theinsider trading information and the insider trading person, then analyzes the corereason why it is difficult to proof the insider trading, including the confidentiality anddiversity of insider trading behaviour, high requirements on standards of proof andthe defect in the burden of proof, at last elaborates the necessity and significance toperfect the system of burden of proof in insider trading in our country’s securitiesmarket.The second part of the article mainly probes into how United States uses perfectsystem of burden of proof to punish its insider trading behaviour, from its legislationhistory on insider trading behaviour to the four kinds of standards required inrecognition of the insider trading, Besides, the author supplies some typical cases toillustrate the positive role that might be played by a perfect burden system inpunishing such crimes, and meanwhile to providing some reference for the judicialpractice in China.The third part combines the content of the first two parts, the author concludeswith some suggestions on how to perfect the system of burden of proof on insidertrading in our country, including the use of environmental evidence, the improvementof the standards of proof, and analyzes three aspects from which how to the countrymay set out to perfect the system of burden of proof on insider trading, which is:administrative punishment, criminal justice and civil compensation.