Judicial Cognizance On Insider Trading And Divulging Inside Information

The securities market is one of the main venues to raise the capital for the market economy, and it is also called "economic barometer", for its close with the national economy trends. However, we also see that the stock market is full of insider trading and disclosure of inside information after obtaining long-term development, which has so seriously disrupted the normal order of the securities market, and even seriously infringed the interest of the majority of legitimate public investors.Crimes of securities insiders trading are sophisticated and specialized naturally, and insider traders have natural advantages in wealth, power and status, which make it difficult to investigate and prosecute them. The officials begin to take more forceful measures to crackdown on insider trading. In practice, how to identify what is insider trading effectively and accurately, has always been the difficulty task of regulatory department and the focus of the debate in the court.On March 29,2012, the People’s Supreme Court and the Supreme People’s Procuratorate jointly issued " The specific application of legal interpretation on the handling cases of insider trading and disclosure of inside information",which is referred to as "interpretation on insider trading".The striking point in the interpretation is that article 3 uses the method "criminal presumption" to judge that by unusual trading activity or a close relationship between trading behavior and inside information. People argue about the article fiercely, some of whom are opponents.Besides the Preface and the Epilogue, this article is divided into six parts:Part Ⅰ:The connotation and characteristics of insider trading. This article will briefly introduce the essence, core, and characteristics of the insider trading, reveal the difficulties to investigate and punish insider trading.Part Ⅱ:The basic concept of criminal presumption on insider trading. This paper will briefly introduce the basic meaning, existing basis (philosophy, practice and society) of criminal presumption on insider trading crime, and point out its value to crack down on the crime of insider trading.Part Ⅲ:The components of the criminal presumption on insider trade. The paper will explain the constitutive requirements and interpret the difficulty factors, in order to properly apply the presumption to practice.Part Ⅳ:Laws about Insider trading around the world. The paper lists various measures and the rules in the cognizance of insider trading among the main developed countries and regions. The paper points out their differences, the trend of convergence, and summarizes the current and prospects the development trend of the legal regulation about insider trading. The paper is also trying to find beneficial references to improve the laws of insider trading in our country.Part V:Recommendations of improving cognizance of insider trading. The author will focus on proposed problems and questions in Part IV, and give advice combined with extraterritorial. The suggestion given by the papers consists of:(1) building general recognition principles; (2) refining the whole process of the procedural law; (3) introducing the expert committee, and improving the professionalism in cognizing insider trading; (4) Learning lessons from the United States, and considering the introduction of plea bargaining system, aimed at protecting the interests of the investors effectively.