Research On Legal System Of Securities Practitioners' Participation In Stock Trading

Article 43 of Law of Security in effect prohibits security practitioners from participating in shares trading.However,in the fact,it isn't a feasible statute,with its juris justice being suspected.It is more possible that practitioners,by virtue of their positions,be involved into insider trading and interest conflicts trading,but the undistinguished ban cannot root in such possibility.The legislative mode of completely prohibition backed by a government-central security market,with unitary supervisor and single supervision approach,leads to the limitation of supervision ability.Risk averse,the legislators have to choose such an arbitrary mode of legislation.Under the background of reformation of security market supervision system,practitioners of funds have been set free of investing funds,while practitioners of security shall be going the distance.A systematic regulation is needed after the ban lifted,which implies a process of right distribution of valuable information among the practitioners,security companies,the clients of those,and common investors on security market.Not only the government but also the intermediary organization and the security institutions for which the practitioners work have the motivation to distribute the right.Nevertheless,each of them has different efficiency.The security institutions,relying on the interest tie based on employment legal relationship between themselves and their employees,turn to be the one of most efficient,following with the intermediary organizations who totally control the trading and practicing information of the practitioners and decide on market and industry access.Government,furthest from market and with strong color of planned economy,is the most inefficient one.Hence,the multi-level regulation system of security trade of practitioners shall focus on internal control mechanism,taking self-discipline as supplement,as well as administrative supervision as inferior.This essay consists of four chapters.Chapter I analyses the legal logic of levying limitation on security trade of practitioners,releasing that what the law aims to keep practitioners from are insider trading and interest conflict trading.The legislative mode of undistinguished ban appears to be extreme and unfeasible.The government-central legal background of security market supervision and the necessity of releasing practitioners' trade decided by the trend of reformation are also mentioned in this chapter.Chapter ? introduces the regulations of security trade of practitioners in U.S.and H.K.The main rules of internal control and self-discipline are roughly illustrated and compared with regulations in effect of China in this chapter,which implicates the necessity of building a multi-level supervision system.Chapter ? gives a delicate analysis about the role of frontline in supervision which security institutions shall play in the regulation of practitioners' trading,suggesting that the internal control system shall take fire wall and trade report and approving as priority.It is also elaborated that how those internal control rules be transplanting into and compliance with Chinese current legal system.Chapter ? analyses in detail about the role of bridge between administrative regulation and internal control of security companies which the security exchanges and industry association shall play in the regulation of practitioners' trading,emphasizing that intermediary organizations shall integrate and make use of their resources of information to focus on information releasing rules and practice credit constraint,giving their supports to the regulation on technological aspects.