Law Research On Behavior Regulation Of "Rat Trading" In The Securities Market

"Rat Trading" behavior which is entrenched in China’s securities market is a major chronic disease. Since2008, the CSRC punished Tang Jian because of his "Rat Trading" behavior for the first time, more and more "Rat Trading" violation cases come into the public view. In2009, the National People’s Congress passed the "Criminal Law Amendment (7)", added "the use of undisclosed information trading crime." There have been Zheng Tuo, Ma Le and other fund managers who has the implementation of "Rat Trading" behavior was sentenced to the crime. In2012, the National People’s Congress on the "Securities Investment Fund Law" was amended to, It seems that "securities practitioners securities investment transactions related personnel opened a hole"; On one hand, this area shows that the securities industry in China has made considerable progress, On the other hand, the Regulation of Securities Market was faced with great challenges.The meaning and attributes about Securities Market "Rat Trading" behavior is not clear by law at present. Some Chinese scholars regard the "Rat Trading" as a "breach of trust",other scholars give "Rat Trading" as " insider trading"."Rat Trading" behavior, and other violations such as insider trading, market manipulation, fraud in the securities market are obvious differences. It has serious damage to the stock market order of fair trade. At present, China supervision of "Rat Trading" behavior, the "Securities Act", the "Fund Law" and other laws and regulations economics adjustment, there are institutions and organizations CSRC and other regulatory administrative authorities and stock exchanges, the Securities Industry Association, has been formed a relatively complete legal and regulatory system and mature regulatory model, but there are still many problems. For example, the fund management company’s internal governance and oversight of the "Rat Trading" behavior is low fines administrative penalties, with "Rat Trading" behavior is extremely difficult to obtain evidence, the functions of the Securities Industry Association did not play well, the fund management practitioners lack of staff trust culture, etc. These problems have seriously hindered the healthy development of China’s securities industry. Taking on the Commission and the judiciary have been treated "Rat Trading" case, for example, in the analysis of the current regulatory laws and regulations based on the proposed regulation to improve "Rat Trading" behavior recommendations. Under the current legal framework, to further improve the adjustment "Rat Trading" behavior of the relevant laws, We should make some changes, such as making sure what’s "Rat Trading", how to define the words "undisclosed information" in securities market, how to convert the illicit gains of "Rat Trading" to fund property. We should make sure that the fund management company realize their responsibility clearly, We’ll make efforts about establishing and improving the supervision mechanism of personal trading fund practitioners, strengthening the fund practitioners of professional ethics.