The Practice Of Extraterritorial Jurisdiction Of US Securities Law And Its Inspiration To China

How to achieve the effective supervision of transnational securities is an urgent need for securities regulation under the background of internationalization.Various countries exercise their extraterritorial jurisdiction of the securities law by extending the national jurisdiction to the extraterritorial sphere,extending personal jurisdiction and applying the conflict rules in order to safeguard its own national interests.The problem of jurisdiction conflict and overlap is inevitable,and may lead to cross-border financing company at a loss when they in compliance with the law.So how to limit the jurisdiction of cross-border securities transactions is an urgent problem to be solved.This paper discusses the scope of extraterritorial jurisdiction of securities law in the case of extraterritorial jurisdiction of US securities law from the perspective of institutional evolution and rule evolution.The traditional rules of international law,such as customary international law,international comity principle and rationality principle,balance the tension and limit of extraterritorial jurisdiction,lay the foundation for the evolution of the jurisdiction theory and rules of securities law.The United States has developed long arm jurisdiction principles,"effect test","behavior test" and "effect-behavior test" to broaden the scope of subject matter jurisdiction of US securities law outside the territory.The jurisdiction of US securities law outside the territory had shifted to conservatism after Morrison case,Wall Street Reform and Consumer Protection Act amended the newly established "transaction test",and changed the traditional standards of the judge's discretion and the problem of over-broaden in extraterritorial jurisdiction,though the problem of absence of supervision and jurisdiction overlap still remain and the jurisdiction standards need to be improved.China's capital market opening is only a matter of time,and will experience the problem of how to define the jurisdiction of the national security law issues in the future.Based on the above enlightenment,this paper puts forward that China should draw lessons from the problems of securities matter outside the mature capital market,sort out and analyze the current situation of our securities legal system,put forward the specific problems and study the solution ideas to promote our securities matter practice.