Research On The Chinese Localization System Of Circuit Breaker

Circuit Breaker is a transaction risk control mechanism in the securities market.In 1987,it was first proposed to deal with the stock market crash in the United States.And its original aim was to effectively prevent the abnormal risk of the securities market and maintain the effective operation of the market.At present,the system has become a good risk prevention and control mechanism for overseas countries to maintain stability in the stock market.The establishment of each system has its specific background.Due to the serious stock market crash in China's securities market from June to August,2015,the investors suffered huge losses,which caused the fierce fluctuations of the securities market in China.Under this kind of background,China introduced the Circuit Breaker to prevent the abnormal risk in the stock market.However,the implementation of this mechanism in China's securities market is unsatisfactory.In the four days of implementation,it triggers the melting point causing the suspension of trading for four times,which seriously affected the normal securities trading in China and was eventually stopped by the CSRC.This led to the controversy concerned with the Circuit Breaker among the various parties in society.This abnormal phenomenon indicates that there are many unreasonable aspects in the design of Circuit Breaker in China,so it is necessary to conduct in-depth research on it.This thesis is divided into four parts to study the Circuit Breaker: The first part mainly discusses the theoretical basis of the Circuit Breaker,and explains the effectiveness and reasonable positioning of it upon the risk control of securities market from the perspective of its origin,meaning,legal characteristics,social effects and legal basis.The second part analyzes the reasons why the Circuit Breaker can succeed in the United States securities market via the practical investigation of the Circuit Breaker in the United States securities market,and then provides some lessons for the resumption of the localized Circuit Breaker in China.The third part analyzes the current situation of the implementation of the Circuit Breaker in our country,the causes of the failure of localization and the necessity of restarting the mechanism,so as to find out the reasons why the Circuit Breaker is unsatisfactory in China and the current deficiencies of the mechanism.The fourth part puts forward some reasonable suggestions for constructing China's localization Circuit Breaker by clarifying several prerequisites for restarting the Circuit Breaker,perfecting the legal norms of the Circuit Breaker and corresponding supporting measures.The author believes that the Circuit Breaker will be able to be localized in China,play a positive role in preventing the abnormal risk and ensuring the effective operation of the market in China's securities market,and ultimately serve our securities market in a better way after the perfection of the legal norms and corresponding measures of the Circuit Breaker.