The Regulation Of High-frequency Trading From The Perspective Of Fairness Doctrine

The development of information and computer technology、the birth of electronic transactions and the securities trading from artificial trading to electronic trading in the direction of development. It is based on the high-frequency IT technology and financial deepening on a combination of high-frequency trading, which plays an important role in reducing transaction costs, increase market liquidity and promote market efficiency, but the fairness of high-frequency trading also caused a lot of controversy and discussion. Lead to high access threshold, high frequency trading natural hosting service and manipulation of trading strategy is not fair, to the detriment of the interests of ordinary investors. America 2010 "flash crash occurred", America, mature financial markets began to concern the fairness of high-frequency trading. Since then, the International Commission USA, Securities Regulatory Commission of the flash crash investigation: effects of high-frequency trading on the market caused by the fair, and has the report and the form of legislation to strengthen the supervision of high-frequency trading.The degree of development of the financial market of our country lags behind Europe and other mature financial market, but China has a high-frequency trading, some securities companies, institutional investors and private equity funds have also started using high-frequency trading in securities futures trading. Since the Everbright Oolong refers to the incident, high-frequency trading into the public’s perspective, are well known. More market personnel and scholars began to study the problem of high-frequency trading, including high-frequency trading fair. However, China’s relevant regulations is still very weak, there are not many studies on high-frequency trading fairness, based on the above background, this article from the financial supervision from the perspective of fairness of high-frequency trading regulation system research.This paper is divided into four chapters. The first chapter is the basis of the study, from the information and the development of computer technology, electronic trading platform, the transformation of the traditional exchanges appear and financial derivatives development perspective on high-frequency trading form carding. The development of information and computer technology, gave birth to the formation of electronic transactions, the IT technology and financial securities transactions with depth, to the development of automation. Investors can use the super computer automatically, frequent trading of securities. The emergence of a large number of electronic trading platform, and the transformation of the traditional company system to exchange, exchange between the increasingly fierce competition, in order to increase trading volume, increase revenue, improve infrastructure, provide data and excuse trading channel faster for high-frequency trading. The development of financial derivatives provides a large number of financial instruments for the use of high-frequency trading, the complexity of algorithm model and the relevance of the characteristics for high-frequency trading. The development of high-frequency trading prompted more popular financial derivative products, both to promote each other. This chapter lay a theoretical foundation for the follow-up supervision system construction.The second chapter is the necessity of high-frequency trading regulation, mainly high frequency trading inequality. This chapter analyzes the performance of unfair trading, including the high-frequency trading access threshold, hosting service and manipulation of trading strategies. High frequency trading has put forward higher request to the capital, technology, personnel, the average investor does not have such a high frequency trading conditions, even if the access threshold is open, the natural barrier in many investors, high-frequency traders has its natural monopoly advantage. Provide faster transmission speed of receiving and exchange hosting services supplied by the host for high-frequency trading, compared with no mandatory service of ordinary investors, high-frequency traders can react more quickly in ordinary investors before. The most important process in the high-frequency traders trading is the use of a variety of trading strategies for profit, but in different trading strategies, there are high-frequency traders by manipulating the trading strategy of pursuing profits, entice or deceive other investors, market demand, price and profit. These unfair factors, all require regulators to focus on, and for its regulation.The third chapter uses the comparative method, the reform of the legal system of the international organization of Securities Commissions, America, Germany and the European Union and other countries and mature financial markets on high-frequency trading supervision. Firstly, the International Commission on high-frequency trading supervision, International Commission after American "5.6 flash crash" incident, the consultation and investigation problems on high frequency trading, high frequency trading problems later released a report, and the high frequency trading regulatory proposals. Secondly analyses some American high frequency trading on the legislative and regulatory system, America is the birthplace of high-frequency trading, high frequency trading development is the most mature, America of high-frequency trading was recognized only in recent years, in practice the problems, will timely adjust or release policy to regulate high-frequency trading. Again, analysis of Germany’s first high frequency trading legislation and supervision system, supervision process of Germany in high-frequency trading, first proposed control strategy that high-frequency trading. Finally, the analysis of high frequency trading regulatory attitude and legislation, the EU is more conservative and negative attitudes, use does not encourage high-frequency trading, therefore in the regulatory system, adopt more stringent requirements on the high-frequency trading.The fourth chapter discusses the legal system of high-frequency trading supervision in china. First of all, analyze the current situation and defects of high-frequency trading supervision in China, the lack of high-frequency trading legislation and special supervision system in China, the futures exchange will have some record to program trading and daily withdrawals restrictions on normative documents. Secondly, from the perspective of the legal basis of high-frequency trading regulation, China’s high-frequency trading regulation should be based on fairness of financial supervision as the main points, the process of financial supervision, the financial market of fair importance, so the regulatory process in high-frequency trading, also with the fairness weight. Finally, from the three aspects of the regulatory body, regulatory objects and system to discuss how to build China’s high frequency trading regulation legal framework. High frequency trading involves the futures and spot markets, between different exchanges should establish and improve the supervision system of cross market linkage. The high-frequency traders establish a filing system of high-frequency traders and trading strategy. At the same time the high frequency trading data in the transaction process, collecting trading strategy judgment content supervision.