Legal Regulation Of The Stock Options Market Manipulation

The Shanghai Stock Exchange launched the first index options "SSE 50" in February 9, 2015. Marking China into the "Option era." Stock option include single stock options and stock index options(ETF) is the international capital markets financial derivative products, plays an active market, the market risk control, and other ways to enrich the important role of investment. However, due to stock options have the leveraged, buyers risk locking, abundant investment strategy, across the spot and futures markets and other features, it’s violations also has strong motivation, behavior is more subtle, the risk of market manipulation large particularity. For this reason, the application of existing laws and regulations of the stock option offense becomes very difficult. To study the specificity of stock option, especially illegal manipulation,it is also this article core.This article contains an introduction, body and conclusion of three parts. To study the characteristics of stock option, the particularity behavior of the manipulating and found that at this stage in the legal regulation of the problems and propose reasonable solutions. Which body part is divided into four chapters:The first chapter is an overview of stock options, stock options are mature international financial derivatives, has 40 years of history, but in China, the majority of scholars, investors, regulators for stock options are very strange, therefore the author deemed necessary by a chapter of a detailed overview of what is stock options, stock options characteristics, with the traditional distinction between financial derivatives as well as the history and current situation of overseas stock options and other issues. Intended to let more people know about the stock options, stock option manipulation realize the importance of regulation of the securities market.The second chapter studies the similarities and differences of stock option market manipulation and the traditional manipulation. first of all, analyze the traditional market manipulation on the legislation and its main manifestations and found mainly in the traditional market manipulation and price pressure to raise the share price of two forms. Subsequent, analyze the manipulation of the stock option and found in the stock option in addition to traditional forms of expression, as well as a fixed share price, small micro-manipulation, temporary closing price of three forms do. Finally, comparing the traditional manipulation and manipulation of stock option, found the stock option manipulation have the mostly cross-market manipulation and more for institutional investors manipulation particularity.The third chapter is the issue of stock options that may exist in the regulatory process. First, from the legislative point of view, our country did not make specific provisions for the stock option manipulation, choosing instead to apply the "Securities Act" and "Exchange Management Regulations" provisions. But the form of stock options to manipulate the market has significantly exceeded the scope of regulation of existing laws and regulations, and this lack of self-characteristics of the law will bring great obstacle to the stock option manipulation and punishment. And relevant legislation at this stage generally lower level of stock option and more for outline style, its regulation is mainly based on the "Securities Act", "Exchange Management Regulations", "stock options trading pilot management approach", and the Securities Act "is only the first 2, paragraph 3, of the securities class made a general requirement derivatives. In addition, stock options for legislation more as a "Provisional Regulations", "self-rule", which makes the stock option legislation lacks authority. Secondly, from the perspective of law enforcement, market manipulation of stock options is unique, which led law enforcement inspection found illegal clues facing difficult challenges such investigation difficult. Specifically, the stock option manipulation concealed, without the establishment of an effective mechanism for reporting illegal in our country, the law enforcement body is difficult to find clues. And manipulation of behavior patterns constantly updated stock option, making law enforcement authorities in the investigation process of manipulation is difficult to find, even if found to prove violations have faced a long path, subjective prove difficult issues. Finally, from a penalty perspective, China’s administrative penalties for market manipulation is manifestly inadequate penalty decision from the Commission’s analysis of the book point of view, China’s market manipulation offenses confiscation of illegal gains and impose penalties generally doubled fine, as long as a few cases punishable by fine times, and in the identification of illegal gains is to manipulate the market’s actual earnings rather than book profits prevail, which makes the penalties tend to make penalties for violations of the dangers of results do not match. Such punishment is difficult to deter criminals. The criminal penalties for manipulation also evident lack of Criminal Law and the most important is the "Securities Act" provides for the principle of civil liability too, might without implementation.The fourth chapter of the stock option manipulation perfect proposal legal regulation. The section from the legislative, executive, administrative penalties, investor protection and other aspects, put forward a sound proposal. First, the proposed regulations for the particularity of manipulation of stock option, and further refine the rule of law, improve the supporting details. Secondly, the proposed strengthening enforcement inspection work, to take advantage of the evidence standard, the implementation burden of proof at the same time, efforts should be made to carry out the administrative work of reconciliation, the strengthening of administrative punishment. Finally, it should further improve investor protection by promoting the implementation of civil liability and to play a role in the development of the center permit investors and other ways to effectively protect the interests of investors.