INSIDER TRADING REGULATION: INTERNATIONAL EVIDENCE AND IMPLICATION OF CHINA
Rui Fang
Abstract
Rui Fang
Abstract
Insider trading undermines the fairness and integrity of the securities markets,which leads to dysfunction of securities markets.However,regulating insider trading is difficult due to the unobservability of insider trading.In this paper,we review the theories and regulations of insider trading.From the perspectives of insiders,inside information,detection of insider trading,prevention of insider trading and insider trading legislation and remedy,we compare China's insider trading laws and regulations with those of U.S,Japan and European Union,and conclude several defects of insider trading regulations in China.We provide several policy suggestions for the future reform.
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Insider trading undermines the fairness and integrity of the securities markets,which leads to dysfunction of securities markets.However,regulating insider trading is difficult due to the unobservability of insider trading.In this paper,we review the theories and regulations of insider trading.From the perspectives of insiders,inside information,detection of insider trading,prevention of insider trading and insider trading legislation and remedy,we compare China's insider trading laws and regulations with those of U.S,Japan and European Union,and conclude several defects of insider trading regulations in China.We provide several policy suggestions for the future reform.
Key concepts: Insider trading, Business, Alternative trading system, Insider, China, Legislation, Accounting, Algorithmic trading