Research On The Legal Regulation Of Cross-market Manipulation

In April 2010,the Shanghai and Shenzhen 300 stock index futures contract was officially launched,which realized the connection between the stock market and the futures market,and also opened the era of real-time linkage of financial derivatives prices.With the continuous emergence of my country’s financial derivatives,my country’s stock market and futures market have entered a period of rapid development,and cross-market products will continue to emerge.Under this market structure,stocks and their derivatives may be traded on different platforms,limited to the manipulation of a single market.With the help of the price relationship between these new financial products,they gradually evolve from the previous single market manipulation and extend their antennae.To another market,through the implementation of manipulation methods in one market,and then affect the transaction order and transaction security of the other market.This makes the previously effective supervisory measures in the single market at a loss what to do in the face of cross-market manipulation.Compared with traditional single-market manipulation behavior,cross-market manipulation behavior has many differences in both connotation and extension.The previous theoretical research on the legal regulation and supervision of single-market manipulation is incompatible with the newly emerging cross-market manipulation and cannot be mutually applicable.Compared with single-market manipulation,cross-market manipulation is more concealed than single-market manipulation,and has more harmful effects on the market than single-market manipulation.It is extremely destructive and even easily induces systemic behavior.Risks seriously endanger the normal operation of the market.The evolution from single-market manipulation to cross-market manipulation has exposed the limitations of my country’s previous legal regulatory measures against single-market manipulation.We urgently need to make changes in the legal supervision system.However,my country’s current laws do not specifically provide for the legal regulation of cross-market manipulation.The newly revised Securities Law in 2019 only lists cross-market manipulation in terms of market manipulation methods,which is a framework provision.When the "Futures Law" is about to be promulgated,we must conduct in-depth research on it,understand domestic and foreign legal regulations and the opinions of scholars,and explore the special characteristics of cross-market manipulation through the definition of single-market manipulation and cross-market manipulation and complexity.Combining the experience of countries outside the region and learning from them,we can solve the difficult problem of the identification of cross-market manipulation in our country.Starting from the cases that occurred in my country’s practice,through inductive analysis,it is concluded that my country’s current legislation and practice have dealt with the dilemmas caused by cross-market manipulation,and then put forward targeted and perfect suggestions for the impact of cross-market manipulation in our country.The study of legal regulations is an inspiration.It hopes to contribute to the construction of my country’s legal system,so as to better promote the standardized and stable development of the stock market and futures market.This article is mainly divided into four parts:The first part is the basic theory,through an overview of cross-market manipulation and single-market manipulation,and define them one by one.Explore the concepts,characteristics,and models of single-market manipulation and cross-market manipulation,and compare and summarize the differences between cross-market manipulation and traditional single-market manipulation,so as to have a more intuitive understanding of the connotation and extension of cross-market manipulation Understanding,and then lead to the theme of this article,to provide theoretical support for the following analysis.The second part analyzes the identification and legal consequences of cross-market manipulation,mainly analyzes the predicament of domestic identification of cross-market manipulation,and through the exploration of my country’s current laws and regulations,summarizes the reasons why it is difficult to identify cross-market manipulation in my country.Cases in practice show the regulatory difficulties faced in practice caused by the lag in legislation.Through the study and reference of the US’s methods of identifying market manipulation behaviors,to realize foreign use in China,the requirements for identifying cross-market manipulation behaviors in my country are summarized to solve the pre-difficulties in the legal regulation of cross-market manipulation behaviors.At the same time,it also expounds the current situation in my country.The legal regulatory consequences for the implementation of cross-market manipulation.The third part is a case study of cross-market manipulation events.Regarding the“8·16 Oolong Finger” incident of Everbright Securities,it was assumed to be a case of cross-market manipulation.Through the analysis of the Everbright incident,the loopholes and defects in my country’s current legislation in dealing with cross-market manipulation incidents were discovered.That is,there is a conflict in the application of law in regulating cross-market manipulation;the cross-market supervision and coordination mechanism is weak;there are fewer civil liability compensation regulations;the programmatic transaction cross-market manipulation supervision system is not sound,which provides the fourth part of my country’s legal regulation of cross-market manipulation Enlightenment.The fourth part is the suggestions for perfecting the legal regulation of cross-market manipulation in our country.Through the analysis of the second and third parts,combined with the current status and actual situation of my country’s legislation,we put forward feasible suggestions,hoping to clarify the connotation and identification standards of cross-market manipulation in the legislation;comprehensively regulate the types of cross-market manipulation;improve Cross-market supervision and coordination mechanism;improve civil liability for compensation;improve key systems to standardize the development of procedural transactions,so as to improve my country’s legal regulatory mechanism for dealing with cross-market manipulation.