Research On Insider Trading In Credit Default Swap Market

As the most prominent innovative financial instruments in the last 30 years,Credit Default Swap(CDS)has played a vital role in helping creditors to hedge risks,providing capital facilities and spreading risks of financial system.For a long time after the immerse of CDS,a financial derivative,in fact it enjoyed a position free from supervision.However,during the time of the financial crisis of 2008,CDS market has become the source of risks rather than a place to hedge risks as it was meant to be,which caused the introspection of supervision departments of various countries.Insider trading played a central role in dissimilation of CDS.In America which boasts the most-developed CDS market,CDS has been defined as a kind of securities thus under the bond of several rules including rules about insider trading.Still,considering the particularities of CDS market,the compliance of rules about insider trading to CDS market raised plenty of problems ranging from theory to specific regulatory rules.The Chinese CDS market is in its start-up period,which will inevitably confront the issue of how to manage the legal treatment of insider trading in CDS market.In China,the research concerning insider trading in CDS market is still in blank field.Therefore,to provide theory and regulatory support to the wholesome development of Chinese CDS market,it is necessary to work on the problem of insider trading in CDS market under the circumstances of Chinese own condition.The full text includes three parts:introduction,main text and conclusion,and the main text divides into four chapters.The first chapter introduces the particularity of CDS market via the analyze of its structure and legal nature.It is this particularity undermines the basis the traditional insider trading theory provides of regulating insider trading in CDS market.The second chapter researches on theory and specific regulatory rules of regulating insider trading in CDS market.Though traditional insider trading theory cannot justify the regulation of insider trading in CDS market,insider trading in CDS market do cause harm in some circumstances thus needing legal supervision.The third chapter provides several conceptions to improve the regulation on insider trading in China's CDS market from the aspects of market framework and specific supervision rules.The primary task is to cultivate China's own CDS market which makes it unsuitable to ban insider trading in CDS market completely.