Some New Thought on Insider Trading in the Derivative Market——The Current Act on Anti-Insider Trading in Australia and the Implications to Our Country

This paper draws on the rich experience of Australia in tackling insider trading in the derivative market, a new forward-looking subject under scrutiny. It is believed that insider trading is intrinsically contradictory to informational asymmetry. As a matter of fact, laws on anti-insider trading can not effectively stop insider trading of derivatives. Over- complicated laws on anti-insider trading will affect the market adversely. Instead easing control over insider trading--a new idea--will favor the development of the market. So it is imperative to let the market decide life and death of insider trading. However, the most practical and moderate alternative is to revise the law on anti-insider trading in force so as to keep the market fair and effective. Finally, suggestions are offered to check the rampant insider trading in present China.