Research On The Civil Liability Of Manipulation Of Futures Market

Freedom and equality are the essential attribute and the base of the market economy. Any manipulation of the market is the deviation to the spirit of the above-mentioned, the distortion of the market economy, disruptive behavior pursuing inappropriate fortune. Futures market is no exception. Futures market plays a core function of price discovering and risk controlling, while manipulation makes the mechanism cannot work properly, distorted and resulting in unreasonable price. Once the normal price cannot come into formation, investors of the futures market will not be able to make the economic, rational judgment, and the function of risk controlling will be affected so that it cannot be achieved. As a result, the foundation of the futures market will be threatened, and the legitimate interests of the investors will be compromised. It is a common practice in mature futures market to prohibit market manipulation and investigate manipulators’ liability. There are some laws providing prohibitions of manipulation, and the administrative and criminal liabilities. However, the really blank of civil liability is the lack of consideration of the legislation of our country.Firstly, the intrinsic motivation of manipulation is self-seeking. Therefore, it is a more efficient way to restrain this behavior to subject the manipulators to civil liability and burden them the compensation liabilities, incurring huge losses on the property. Secondly, the misconduct causes damages of the interests of other investors. It is not fair unless the damages of the victims are made up. Finally, the absence of civil liability system is a departure from the original intention of the liability system of the futures market manipulation. It is the shallow motives of the liability system building to maintain the market order, and make the future market functioning. The existence of futures market is to create a free and fair investment market. The investors’interests are on the top place of the value chain of the market, and it will be meaningless of the investment environment without investors. So the ultimate goal of the liability system of manipulation serves the interests of investors. However, the absence of civil liability makes the above a failure, in a certain degree. Thus the building of civil liability of manipulation is a major issue which is inevitable in the field of futures legislation.Provisions of futures market manipulation have been absent for a long time, which goes against the protection of the interests of investors. The article will analyze this behavior, and come to a conclusion that the conduct is a market fraud essentially, and its nature is a tort, which compromise the financial consuming rights of investors. Doctrine of presumption applies in the case of the compensation for the actual loss of the victim investors. Persons concerning to the manipulation will be liable after being determined by authority. The aging of limitation of actions, the inexistence of causality and the victims of intentionally will be the exemptions of manipulation.