Legal Regulation On Abnormal Situation Of Securities Trading

So far, securities market has been developed and evolved into a large system which is highly technical, systematic and sensitive. Securities trading must be carried out in an environment which is continuous, stable, safe and predictable. However, such a sound environmental status for current securities market at home and abroad is increasingly being interfered by abnormalities that occur frequently during securities trading. Such securities trading related abnormalities is an abnormal condition found in securities trading activities. It not only directly affects the interests of transaction party, but also, in a wider range, affects the interests of other market participants, the performance of the centralized market transaction function and the market order. However, either for law circles or practice authorities, necessary legal thinking and juries prudential basis are lacking in dealing with those abnormalities. Therefore, the study of securities trading related abnormalities bears both the theoretical value and practical significance.This paper is consisted of four parts. In the first part, it first summarizes the country’s current legal definition of the concept, features and scope of securities trading related abnormalities, then analyzes the theoretical basis for such abnormalities in addition to the analysis of necessity for the establishment of a complete set of laws and regulations on such abnormalities based on the specific articles of current existing laws and regulations on such abnormalities. In the second part, it introduces foreign legislation on such abnormalities, as well as its remarks. The advantages of foreign laws and regulations on such abnormalities are analyzed in an effort to summarize what can be learned by China in completing the laws and regulation on it. In the third part, it analyzes the status quot and existing issues in our laws and regulations on such abnormalities. Four issues are summarized and proposed on the basis of summarizing and introducing the country’s existing laws and regulations on such abnormalities, which are The system design of fusing mechanism is not perfect, less enforceable in terms of these regulations on dealing of such abnormalities, the absoluteness of the rule that the result of securities trading must not be altered and the incompleteness of the legal accountability mechanism for such abnormalities. In the forth part, based on the aforementioned issues, four suggested solutions are proposed accordingly. Those four suggestions for improving the laws and regulations on securities trading related abnormalities are to adjusting the starting standard of fusing mechanism, increase the enforce ability in terms of regulations on dealing of such abnormalities, introduce the error transaction cancellation system and complete the legal accountability mechanism for such abnormalities.