Study On The Perfection Of The PRIMA Approach

Recently,as the securities holding system transited from direct to indirect holding,the dematerialized trend has been prevailing.The indirect holding system has been widely accepted based on the conveniences and speedy transactions brought.However,the legislation in this area lagged far behind of the reality.The traditional choice-of-law approaches are not applicable to securities disposition questions under indirect holding system.The Hague Convention on the Law Applicable to Certain Rights in Respect of Securities held with an Intermediary to a great extent inherited and developed lex rei sitae approach,combining the principle of party autonomy,making great contribution to the certainty and predictability of conflict law.In the other hand,we shall admit that the PRIMA approach is not perfect.Instead it has obvious logic loops.Especially in the process of transferring rights in rem,the problem of “dual interests” would rise according to the instruction of the PRIMA approach.Some scholars have proposed a monism approach called “Super PRIMA” to solve this problem.But it is defective and unpractical either.Therefore,the essay tries to start from the differences between direct and indirect holding system,dissecting various choice-of-law approach.While accepting the basic theory of PRIMA,the essay pointed out the flaws in it and put up ways to consummate it with several cases as illustration.In the last part,the essay focuses on the current situation of Chinese securities market and advises on the relevant legislation.