The Analysis Of The Violation Of The Securities Company Regulation

Now, the stock market has become an important part of the modern market economy system, and it plays a vital role in the development of a country’s economy. As an important participation of the securities market, Securities Company is a bridge which links investors and fund raisers, and its importance is still upgrading with the launching of innovative business.The stock market is the most active market. Just like other markets, it also has widespread market failures, so the introduction of government supervision and the regulation of the securities market are necessary. Securities market failures include financial crisis and foam caused by externality, moral hazard and adverse selection due to asymmetric information, and distortions in prices caused by price manipulation. As the most important subject of stock market, Securities Company not only occupies a serious asymmetry of information superiority, but has strong financial strength, with which it has the strength to affect the direction of stock market. If there is no strict regulation towards securities companies, there would have opportunistic behavior and they would violate the interests of investors probably. Therefore, all countries attach great importance to the supervision of securities companies. They safeguard the healthy development of securities markets and investors’interests through the establishment of regulatory bodies, and to formulate laws and regulations to carry out strict management of securities companies.China’s securities companies is the product of the shareholding reform of state-owned enterprises, so the whole foundation is weak and the legal system is imperfect. Thus many illegal behaviors like non-standardized operation, insider trading, operation of the market, securities fraud and other irregularities come out one after another. Therefore, the regulation towards securities companies is particularly important. How to strengthen the supervision of securities companies to protect the interests of investors, especially small and medium investors and to promote market fairness and efficiency is an important issue for the Chinese securities industry regulators.This article aims to provide a suitable regulatory mode of development for our country combined with the reality of China through the analysis of the reasons for violations of securities companies, the review of government’s control theory, the analysis of the theoretical basis for the regulation of the securities industry, and the comparative analysis of the advantages and disadvantages of foreign securities regulatory model. Based on the Game model, this paper analyzes the payoff function of regulatory agencies and securities companies, and points out that to standardize the specification operations of securities companies, the key is to improve the technology of supervision, to intensify the efficiency of supervision and punishment, to promote information disclosure, to mobilize the masses supervision, and to establish for the regulator mechanism.