Legal Analysis Of " Fat Finger" Claims Of Everbright Securities

Everbright Securities Corporation Limited(hereinafter referred to as the "everbright securities") "8, 16 fat finger event", caused investors to claim. The case is controversial and people form all kinds of fields pay more attention to this. " fat finger" claims of Everbright Securities involving both the securities and futures, the new case may become the important chance to improve the legislation of the capital market, which involved in the case is novelty and representative. This paper is divided into three parts:The first part: the cases will be reviewed. On August 16, 2013 Everbright Securities were appealed by " fat finger" event for compensation which the investors demand for insider trading losses. On August 5, 2014, the case was on first instance trial in Shanghai second intermediate people’s court. The China securities regulatory commission identified "8, 16 fat finger event" refers to the case as an extreme individual case,is the first events for trading software program caused by events in china,not only caused serious losses to investors,also caused the secrurities and futures market turmoil.The second part: the legal analysis of the contention. This part focus on the analysis of the case contention in perspective of law. This paper argues that insider trading behavior is composed of insider, insider information and insider behavior。 "8, 16 fat-finger event" of Everbright Securities is the people who knows the inside information to trade outside, so it shall be considered insider trading behavior. While seeking compensation for insider trading on the damage done to the investors, the paper finds that the manner in which the presumption advocated in finding the fault and causation should shift burden of proof, the perpetrator bears the burden of proof. Also based on the specific circumstances, this paper analyses and confirms the Everbright Securities has subjective fault, while investor losses and Everbright Securities Act exists a causal relationship.76 th article of China’s securities law provides for three forms of insider trading, and provides who trade inside caused others losses shall bear liability. Although there is no provision of the regulations on futures trading management for civil liability by insider trading, however due to the regulations and the Securities Act is the legal relationship between upper and lower-order, so that while there is no requirement or the provision is unknown, we can refer to the application of the provisions of the Securities Act. For this reason, in the futures market, who caused investors losses by inside trading, shall bear civil liability.The third part: Legal thinking about the protection of the interests of the investors under insider trading. Insider trading violates the principles of fairness, impartiality, openness, and seriously infringes the interests of investors,disturbs the securities market and the whole order of the proper functioning of financial markets, so it should be severely punished. However, the Characteristics of China’s statutes State and the absence of China’s relevant laws, precedent, so that the judge always at a loss when in the face of these cases and are not active in the performance of judicial activism. Such situations lead to insider trading in the market are not effectively curbed,instead they are developing in different trends. From the development of capital markets, it is necessary to establish and improve laws, regulations and relevant precedent, create relevant precedent as soon as possible in order to stabilize the confidence of the investors, maintain the stability of the capital markets.