Identification Of The Crime Of Insider Trading And Disclosure Of Insider Information

For insider trading and disclosure of inside information behavior, countries around the world have made a prohibition, but these behaviors are repeated. Criminal law as the last barrier of justice and fairness, apparently assumes great responsibilities in the regulation of insider trading.In the first part of this article, the general theories in insider trading and disclosure of inside information crime are discussed, along with legislation of insider trading and disclosure of inside information. Firstly, the general theories in insider trading and disclosure of inside information crime include "disclose or abstain" imputation principles, fiduciary duty theory, and the misappropriation theory.these theories are developed in the U.S. cases, solving the problem why insider trading and disclosure of inside information should be regulated by criminal law, and whose behavior of insider trading and disclosure of inside information should be regulated. These theories have become popular now around the world. Secondly, based on the introduction of theories, I describe the situation of regulation of insider trading and disclosure of inside information in china, including the criminal law and its seventh amendments, the Securities law, the regulation of futures trading, insider trading, disclosure of inside information legislation profile acts, and a judicial interpretation. A file of CSRC is also included in the scope of observation, although it is not a formal legislative provisions, there are provisions worth exploring.In the second part of this article, I analyzed the main body of crime of insider trading and disclosure of inside information, pointing out the advantages of Article 74 of the Securities Law, and analyzed the essential characteristics of insiders is that there are a trust relationship between insiders and the target companies. Illegal insider information officer is informed another subject of this crime, whom the regulation theory is based on its fiduciary duty and the misappropriation theory. It is difficult to define the insider trading close relatives and closely related people. I promote some additional comments based on the previous studies of others. In my opinion, husbands or wives should be classified in the category of illegal insider information officer informed, which implies the practice of the CSRC is wrong.In the third part of this article, I analyzed the meaning and characteristics of insider information, including significance, correlation, and non-openness. The last characteristic is the most difficult in the judicial practice. Here I will introduce a concept of judicial interpretation of the "insider information sensitive period" to define the formation time and disclosing time of insider information. Besides, the correlation between the behaviors of criminals and the insider information is also difficult in the judicial interpretation, so I will discuss it as well.In the fourth part of this article, I analyzed three behaviors of the crime of insider trading and disclosure of inside information, including insider trading, disclosure of inside information behavior, expressing or implying others to engage in insider trading. Difficulties and argues of these there behavior will be discussed. In addition, I point out using insider information is not the constitutive requirements of this crime, and negative crime can not constitute this crime.In the end, I will introduce there other crimes, including the crime of the use of undisclosed information trading, the crime of illegal market manipulation, the crime of making up and disseminating falsified information. The description of these three crimes and the crime of insider trading and disclosure of inside information will be discussed.