Study On Civil Liability Of Insider Trade

Insider trading is accompanied by the securities market.Insider trading civil liability system is accompanied by insider trading.In the past 20 years since the development of the securities industry,illegal activities such as insider trading in the securities market have intensified,violating the principle of the three publics and harming the interests of many investors.At the same time,the price and value of securities are gradually declining,and the securities market has been severely damaged.Securities market optimization function.Regulating the behavior of securities transactions,safeguarding the order of the financial market,protecting the vital interests of investors,and social public interests are the purposes of the system of liability compensation for damage caused by insider transactions.The interweaving of administrative,legislative,and judicial systems is an important environment in which the system exists.The fact that China's “focusing on administrative and light justice” and “emphasizing administrative penalties and light civil compensation” seriously hampers the functioning of this system.Perfecting the civil liability system for insider trading can effectively curb insider trading and protect the legitimate rights and interests of investors.Therefore,it is extremely necessary to re-examine the liability for civil compensation of insider trading.This article takes the “Bright Oolong Finger Case” as the main background.Through the analysis of the focus of this case,it points out the problems in the determination of civil compensation liability for insider trading in the “ China Everbright Oolong Finger Case”.It should take the experience of foreign legislation.The essence goes to the dregs in order to improve the civil legal liability system of China's insider trading.This article is divided into four parts.The first part of the case briefing and the legal issues reflected in the case summary mainly summarizes what happened and summarizes the legal issues of the civil liability for insider dealings reflected in the case,and then extracts three questions: Everbright Company's existence of making use of inside information behavior,the civil dispute resolution mechanism for insider trading and the calculation of the amount of civil damages incurred by Everbright.The second part elaborates the characteristics of the inside information and the standard of identification.Through analyzing the judgment criteria of inside information,it points out the existing focus issues and suggestions on improving to the connotation of insider information,the scope of insider information and the way of information disclosure.The third part elaborates on the civil dispute resolution mechanism for insider trading and proposes to improve China's representative litigation system,grant specific administrative decisions,and improve the resolution mechanism of securities disputes,establishing a civil dispute resolution mechanism for insider trading in China.The fourth part elaborates the calculation method of civil damage compensation for insider trading,points out the loopholes in civil damages in the current system,draws on international successful experience,and proposes a calculation method and system for establishing civil compensation for insider trading in line with China's national conditions.