A Study On The Qualified Plaintiff Of Civil Compensation Litigation In Insider Trading

This paper focuses on the qualification of the plaintiffs in civil compensation litigation of insider trading.In the world,the existing anti-insider trading legal system usually in parallel with criminal sanctions,administrative supervision and civil remedies,and it traditionally more emphasis on the former two.The reason for this situation is that the traditional theories and doctrines can not prove the legal causal relationship between insider trading and investor economic losses.This yet unsolved problem directly lead to the result that we can't identify the appropriate plaintiff in insider trading civil proceedings with persuasive theoretical support.Thus,traditional theories and doctrines either adopt the direct provisions of the law to circumvent this problem,or to the extreme of the negation of civil remedies.The traditional theories and doctrines deem that the insider trading,like the untrue statement,is to violate the principle of openness in exchange market,and the person who conducted a insider trading has violated the investor's equal right to know.The control of insider information,however,is generally not forbidden by law,so it is improper to say that the insider traders will impede investors enjoy their equal right to know inside information.As a result,the efforts of the traditional theories and doctrines in reasoning the causal relationship between insider trading behavior and economic loss on the basis of the protection of the investors' right to know,has been decided that it would never have worked out from the start.Based on this understanding,this article comparatively studied legal practice experience of civil action for insider trading in the country or region abroad,analyzed the existing domestic relevant laws and regulations,summarized some cases in the domestic trial practice,absorbed lessons from the reasonable composition,and finally put forward a feasible way to determine the eligibility of the plaintiff in insider trading civil compensation litigation.This paper has demonstrated the causal relationship between insider trading and investor's economic loss on the basis of clarifying the investors' right of fair trade as the rights and interests that has been infringed in insider trading.The analysis of this paper shows that,to define the qualified plaintiff in the insider trading civil compensation litigation,we should adopt both individual interest litigation model and public interest litigation model at the same time.In the private interest litigation mode,the rival trading investors of the insider trader could be the qualified plaintiff.Limited to the prevailing technical conditions,the qualified plaintiff in the private interest litigation mode can be temporarily replaced by the "traders of the same period",and the specific content can be interpreted by the judge on the actual case with sufficient reasoning.In the public interest litigation mode,the law could directly entitle the proper public service organization such as "CSI Investor Service Center Co" the plaintiff qualification to conduct a tort compensation litigation of the insider dealing,authorize the CSRC the secondary plaintiff qualification in the public interest litigation mode on basis of it's administrative supervision right,and empower the prosecution last line plaintiff qualification in the public interest litigation of the insider trading based on it's power of legal supervision.