Research On The Civil Liability Of Insider Trading In Securities

With the development of society and the progress of economy, the security market has become an important part of the market economy. All countries recognize the important role of the securities market, and through the development of the form of legal regulation of the securities market. Although the securities law of our country stipulates the loss of the interests of others, the actor shall bear the civil liability for the loss of the interests of others. But the provisions are too principled, how to take a specific way to bear civil liability, who should bear the specific issues are not specified. This has brought a very big problem for our country’s judicial practice, so the legal interests of investors are very easy to be damaged, the development of the stock market will also be unstable factors. In reality, the interests of investors in the stock market trading market are often violated,especially the recent frequent incidents in the world to allow the majority of investors suffered major trauma. China Everbright 816 event is a typical case of China’s securities market Oolong refers to the event, is also from this event shows the mechanisms for the protection of investors, there is a serious shortage, legal regulation of insider trading, securities institutions internal control mechanism,investor compensation mechanism and investment relief system, there are many drawbacks.The main structure of this paper is divided into four parts. The first part introduces the legal definition of insider trading, the basic elements of the securities insider trading are analyzed in detail. Including insider, insider information and insider behavior in three aspects. This paper considers the Everbright Securities in816 events, not timely disclosure of the system appears error information, buy a lot of stock and hedge, mislead the investment decisions of investors earn huge profits constitute insider trading.The second part of this paper mainly introduces the elements of the civil liability of the securities insider trading. Including the determination of damage, the fault of the judge and the causal relationship between the three aspects. EverbrightSecurities knowing trading system error, still to hedge against risk, failure to make timely disclosure of stock price has the decisive significance of information and trading behavior and investor loss of economic profits has a strong causal relationship. This article believes that Everbright Securities should bear civil liability.The third part mainly elaborates the domestic and foreign relevant securities insider trading legal provisions. The main list of the United States, Japan, Germany and China’s Hongkong, Taiwan and the mainland. Securities market first appeared in western countries and Western countries on the civil liability of insider trading to solve and the provisions of the law are relatively complete, but due to the existence of different countries and historical factors and basic national conditions of different countries in the definition of insiders, the scope of insider information and compensation relief system is a big difference. This paper is a comparative study of different countries and regions, in order to provide a reference for the lack of the system in this area.The fourth part introduces the idea of perfecting the civil liability system of insider trading in securities. Including two aspects of the legislative definition of the securities insider information, damage compensation.The last part is the conclusion of this article, the paper is summarized, at the same time, in view of the lack of civil liability law of China’s securities insider trading, and boldly put forward their own ideas.