Study On Legal System Of High Frequency Trading Regulation In Security Market

The current stock market has gradually shifted from a manual mode of operation to an electronic market.In the electronic market,computer technology plays an important role.With the continuous innovation of computer technology,the efficiency of securities market has been raised,but the traditional regulatory system has also been challenged.High-frequency trading is a form of transaction that uses computer programs and high-speed transmission equipment in an electronic marketplace.In recent years,a series of High-frequency trading related events have appeared in the domestic and foreign stock markets.For example,the "flash crash" and the Knight Capital Incident occurred in the United States,the " Fat finger" incident of Everbright Securities and the Easton Incident that occurred in China,which makes the claim for regulation of High-frequency trading soared.Countries such as the United States and European countries with more developed securities markets have enacted legislation on the regulation of High-frequency trading,but so far no consensus has been reached s.This has hindered the development of High-frequency trading regulation in the global market.Due to the single structure of the securities market and higher transaction taxes and fees,the development of High-frequency trading in China is relatively slow,but it has begun to take shape.In October 2015,the CSRC issued Procedures for the Administration of Programmatic Tradingin the Securities and Futures Markets(Exposure Draft).Although the full text does not refer to the term "high-frequency trading," most of the provisions are for the purpose of limiting the High-frequency trading.However,after the introduction of the draft for approval,the has not yet been put into practice.China's securities market is now at a critical period of opening to the outside world.From 2017,the "Shanghai-Hong Kong Stock Connect","Shenzhen-Hong Kong Stock Connect" and "Bond Pass" have been implemented one after another.By February 2018,the Dalian Commodity Exchange allowed the introduction of overseas trading of iron ore futures so that domestic and foreign traders can bid on the same platform.In the continuous opening to the outside world,how to supervise foreign High-frequency traders who may enter the stock market of our country without affecting the attractiveness of Chinese stock market to international investors will be the question that regulators have to consider.This article first introduces the definition,characteristics and main trading strategies of high-frequency trading,describes how high-frequency trading is operating and profiting.Secondly,the necessity of regulating high-frequency trading is discussed from the three legal values of the securities regulatory law,efficiency and fairness.The impact of high-frequency trading on the traditional regulatory approach is also analyzed.Thirdly,through the analysis of the main body and behavior of high-frequency trading in the commercial law and the securities law's position,the article builds the regulatory framework of high-frequency trading.After that,the article combined with the experience of foreign legislation,discusses the measures of high-frequency trading regulation from the perspective of admission,behavior and risk of high-frequency trading.Finally,the article discusses the shortcomings of China's regulation of high-frequency trading and corresponding measures for improvement in light of the current laws and regulations in our country.