Research On The Legal Regulations Of Stock Trading Of Securities Practitioners

With the rapid development of securities market, the securities practitioners as the main force of this market grow rapidly,too. Although the " Securities Act " and other relevant laws and regulations expressly prohibit securities practitioners trading stocks, the Commission and other relevant agencies continue to strengthen supervision, securities practitioners still use professional advantages to trade stocks illegally.In contrast,, foreign country,Taiwan, Hong Kong and other regions have not prohibit securities practitioners buying stocks. Instead,they make the relevant regulations to prevent insider trading. By analyzing the legal relationship,violation modes, the deep reasons of stock trading of securities practitioners, and the defferent regulation models among other regions,this paper aims to propose necessity and feasibility to change the supervision methods,and make suggestions to relevant legal regulation so that it can be useful to the healthy development of the team of securities practioners and the securities market in China.In addition to the introduction and conclusion, this paper is divided into three parts:The first part is an overview of the basic situation. Firstly,it discusses the legal relations of stock-tradings by practitioners in securities; Secondly it describes the main mode of illegal stock-tradings, including insider trading, Rat fund and illegal financing behavior; Finally, it analysis the internal and external causes of illegal stock trading.On one hand, practitioners have investment advantages and the illegal gains are large but the cost is low. On the other hand the inadequate legal regulation and supporting measures give an opportunity to employees do illegal dealings.The second part is a comparative analysis of domestic and international stock exchange regulation of practitioners.lt introduces the formation of current regulatory models and difficulties in China.And in the USA,the securities practitioners’stock transactions are regulated from insider trading regulation and conflict of interest transactions. Some special staff are supervised more strictly.The third part is the proposal of regulation of stock trading of securities practitioners. Firstly, it comes to the idea that it is necessary and feasible to change legislation, allowing practitioners trading stocks and regulate their behavior from another point of view. Secondly,when practitioners can buy stocks,we should establish practitioners trading reporting and information disclosure system.And we should pay more attention to the regulations of some special employees.Then,we should establish a harmonized regulatory system from the inside to the outside, including securities institutions,stock exchanges,industry associations, the SEC;Finally,we should improve the penaltive measures for violations from administrative,civil and criminal angles.