Research On Government Regulation Of Insider Trading Stock Market Through The Multi-central Order Orientation

Insider trading is a problem that is difficult to solve in domestic and foreign securities market. Because of economic development, profit motive, system vulnerabilities and other reasons, the insider trading in China’s securities market is also prevalent, there have been frequent phenomenon of insider trading caused a large wave in the community, such as "Li Li case","Hang Xiao steel hook case "," Huang Guangyu case "," Guang Fa Securities Case "and so on. After the government agencies involved in the investigation and strengthened the regulation, insider trading has not been effectively controlled.but intensified. This is not only due to the initial system design flaws, but also show that the stock market itself is a problem. Especially Li Li who is a staff of China Securities Regulatory Commission is suspected in the insider trading events, making the public on the effectiveness of the Commission’s regulatory mark with a question mark. If the conduct of market participants can not be trusted and the conduct of the regulator of the market also has been full of fraud and conspiracy, the injustice of the market and the "black" features will become more significant, It is serious harm to the healthy of securities markets. Insider trading has become the main form of illegal activities in the securities market, because of the ease of their income, crime concealment methods techniques variability, evidence is difficult to obtain, so the effect of the government’s regulation is related to healthy development of securities markets, Effective government regulation of insider trading is being necessary and urgent.This article applied the theory of multi-center management and point of view to government regulation of insider trading, and proposed multi-power center co-regulatory model, the core ideas are as follows:(1) multi-center governance will be used in the insider trading regulation, multiple power centers will be effective in the competition and cooperation, contacts and constraints. Single power center easily lead to corruption, Invalid,"Li Li case" fully explains single power center’s corruption and regulatory failure, so multi-power center co-regulatory is necessary and urgent. But in the emerging Chinese stock market during the transition period, the system is imperfect and need to be improved. Government in the formation of multi-center governance needs to play a special role-the role of guide and planning, which has practical significance in China.(2) multi-power center co-regulatory system needs governments transform their function and role, the government is one of multi-power centers, plays the role of service provider. Therefore, in promoting the process of multi-center governance, Firstly, we need to define the role of government clearly:①the government become one of the multi-power centers, reducing the traditional administrative enforcement power and management power of specific matters;②the Government will to be coordination of other centers of power and rule-makers, strengthening macro-management rights and the rule-making power. A weak and a strong, not only weaken the power of the government, but also strengthen the powers, making this system effective.(3)multi-center governance of insider trading need to foster self-management ability of other power centers. Although multi-center governance model can effectively curb the powers of the expansion, improve regulatory efficiency. However, if the self-management of main power centre is poor, multi-power center co-regulatory system will lose effectiveness, good self-management capabilities will promote the effective supervision,multi-power center co-regulatory model is a new perspective to government regulation. It not only protects the interests of investors, but promotes healthy development of securities markets, and support China’s economic development entities. This article includes six elements:The first part describes the research background and research ideas. The second part is the literature review about domestic and foreign scholars on the theory of multi-center management applications and regulatory aspects of insider trading literature review. The third part defines the concept of insider trading and analyzes the reasons which insider trading can not be effective. The fourth part compares China, the United States and Britain’s typical insider trading regulatory model, learning their advanced monitoring system, and combining with the features of China’s securities market during transition period, proposed positive significance of multi-center regulation. Part V analyzes the case for listed companies, securities intermediary service organizations and regulators suspected insider trading, shows insider trading has developed to depth direction, the current mode of insider trading regulation needs change. Part VI puts forward policy proposals, highlighting the practical significance of this article.