A Study On The Civil Compensation Standard Of Insider Trading

The insider trading has been ceased and monitored by Securities Laws all over the world since it is the action that will damage the share market and continue to infringe the legitimate rights. Although insider trading civil liability system has been formally introduced into China, it is difficult to make compensation for the victims due to the lack of a uniform methodology to identify civil compensation standard; so far, there is no insider trading case of civil compensation lawsuits favor. Therefore, the issue of insider trading civil compensation standard research is of great significance, this paper attempts to discuss the issue.The first chapter introduces the basic issues of civil compensation standard of insider trading. Analysis of insider trading civil compensation subject qualification, the rights and obligations of people who were defined, clear insider trading civil liability and property damage is limited to the victim investors suffered actual damages and direct damages. Based on actual losses to ill-gotten gains to limit punitive damages in civil supplement to determine the amount of compensation determined, insider trading civil compensation presumption of causation takes causal way.The second chapter describes the five insider trading damages calculation methods, namely Out-of-Pocket Measure, Expedient Out of Pocket, Gross Income Loss, Disgorgement of windfall profits, Resale Price Measure, Cover Measure, and with the relevant data of a case these methods specific. Different calculation methods proposed by verifying the theoretical analysis and practical design to draw on our legislation, should be aware of all the pros and cons of different calculation methods coexist, these methods may conflict exists when a specific application, as well as design reflects different calculation methods Thinking different approach.The third chapter compares the insider trading civil liability standards of the United States, Japan and Taiwan of China, the final results of our reference, specifically including the right to compensation range should be properly designed, insider trading civil compensation system in compensatory and punitive can coexist, to scientific decision damages calculation methods, drawing extraterritorial experience must be based on national circumstances.The fourth part constructs our insider trading civil compensation standards on the basis of the first three chapters, is the focus of this article also reflects some innovative. Focuses on the construction of punitive damages to propose ideas, suggestions to set it to the victim investors lost three times, and adjusted according to the needs of development. Made insider trading damage compensation calculation method applicable legislation typed idea, discussed the type of basis, how to do a type of a standard, Out-of-Pocket Measure is relatively more suitable for China’s current the stock market can be considered as a dominant as an effective complement to other types of compensation calculation method to construct insider trading harm our country, we want to promote the healthy development of the securities market have reference value.