Causation Of Insider Trading On Civil Liability Determination

In recent years, the stock market affects a lot of people’s hearts. Rare bull market boom triggered a large influx of hot money, once pushed the Shanghai index to6,000points, but with the inflection point appeared, many small and medium-sized investors saw the stock market’s "brutal" side, many investors have been deep-set serious or even go bankrupt, which tells us that the stock market is just an investment market, not a speculative market. However, after as many securities fraud cases reported, so that small investors are once again re-known the original harmony stock market there are more ugly side. Gome Huang Guangyu insider trading case, and the Tulane library, Liu Naihua insider trading, disclosure of inside information case "and a series of securities insider trading cases, violating the interests of the many small and medium-sized investors, these offenders is indeed facing legal sanctions, but many victims of the interests of small and medium investors are protected, their justice has not been done, but did not get compensation for their losses.On the one hand, and diverse means of insider trading cases, hidden mode of operation, it is difficult to be aware of; On the other hand, in the area of insider trading, our laws there is a certain vulnerability, so that the small investor lawsuits nowhere, often ended in failure. I will focus on the analysis of insider trading, identified from civil liability to the determination of causation, defenses and then you look very carefully you should bear civil liability for insider dealing, and, ultimately, learn from the experience at home and abroad, and to make reasonable suggestions.The paper is divided into the following six parts:the first part focuses on the basic theory of insider trading and its harmful social or listed companies. The second part analyzes the existing liability for breach of civil liability for insider trading nature finds that tort liability, specific analysis of each of the constituent elements, which belongs to the field of tort liability elaborate insider trading. The third part, based on prior tort theories, to combine theoretical basis of civil law and common-law system of the Causality identified applicable in our current tort theory to infer causality identified. The fourth part, insider trading is a field of tort liability tort theory should be applicable method for determination of causation, but the securities market has its own peculiarities, so identified in our current insider trading causal relationship there are some problems, so this chapter is mainly reference to development of the securities market is relatively mature in the United States and Japan, thus seeking to prove a causal relationship for insider trading. The fifth part, focuses on our current should improve the determination of causation criteria. The sixth part of the principle of presumption of fault indeed reduce the plaintiffs burden of proof, adding to the defendant’s illegal cost, but our law does not explicitly to give defendant Disclaimer defenses obviously unfair. This chapter draws on the experience of the United States, the European Union and other countries, to propose China allows Disclaimer defenses.