Elements Of The Short-term Trading

Since the capital market development and the establishment,by reason of profit driven,short-term trading phenomenon is the fact that does not dispute. How to effectively carry outregulation, is always troubling us. The premise of solving a problem is that we need a clearunderstanding of it, judge it. On the short-term trading system, which is the most importantproblem is the constitutive requirements of short-term trading has not been clearly defined.Theoretical circles and practice circles just take measures to local problems, there is nosystematic criteria or methods. The first decision to short-term trading domestic securitiesdisputes--Analysis of Chinese Jiantong Technologies Inc v. Yan lin,in order to explore theshort-term trading elements, to develop our security market and to perfect the system ofSecurities Law offer a modest.In Chinese Jiantong v. Yan Lin’s case, the focus of controversy is the elementsof short-term trading. Chinese Jiantong think, Yan Lin buy and sell shares over a period of sixmonths, constituting a short-term trading, so Yan Lin stock trading income shall be includedin the company. Yan Lin thinks, in buying the stock, he was not Chinese JiantongTechnologies Inc shareholders, Technologies Inc shareholders, so he do not meet the specialsubject to short-term trading system requirements. At the same time, Yan Lin thinks he isobtained the limited shares of sale through the judicial auction procedures, and he isnot in control of shares’s lifting time, therefore, the limited shares of sale should not belong tothe object of short-term trading. To sum up, the behavior of sale within six months did notconstitute a short-term trading, and the profit should not be included the company, buthimself. Trial court think that Yan Lin, before buying the stock, does not have the identity ofshareholders, not meeting the special requirement of subject identity short-term trading; at thesametime,Yan Lin objectively lack securities transactions using inside informationconditions, therefore rejected Chinese Jiantong litigation request.This paper reunderstand of the system,through the legal analysis of short-termtrading system, from the legislative purpose, the subject, object, subjective aspect andobjective aspect, immunity, in the view of system. The author suggests that we should expandshort-term transactions subject, to cancel the system of insider trading and short-termtrading system differences, to apply the the subject scope of insider trading system. Short term trading object, should break through the listing Corporation shares of restricted stock, and wecan learn from the concept of "American equity securities". The subjective aspect can take theobjective rules of subjective. The objective aspect should be from the behavior ofspontaneous, control of time, whether a profit three aspects to consider. Thesubject, object, objective and subjective aspects, determined at the same time, allbe required auxiliary exemption. This paper, by means of system thinking method to constructthe short-term trading elements, is of practical significance in guidingthe activities of legal practice in order to short-term trading system.