Network Securities Law Issues

In the late 20th century, the rapid expansion on computer and internet technology triggered off the development of the on-line securities trading. The internet, as we know it today, is a vast global network of computers storing information on every conceivable subject of interest to humankind. With the invention of search engine, which helps to sift through the vast quantities of information available on the on-line securities trading on the internet provides a favourable environment for the rapid growth of the on-line securities trading.The on-line securities makes good use of the latest electronic technology for expansion of the securities business on the internet. The said business mainly involves the issuance of securities on the internet, on-line information disclosure and propaganda, on-line securities trading, on-line securities clearing and settlement etc. All these on-line activities involve a lot of complicated legal issues, such as legal issues involving electronic contract, electronic payment, jurisdiction of electronic commerce, the security and privacy of electronic commerce. Most of these issues cannot be resolved by way of application of the traditional securities law, but they can be regulated by new legislations only. Obviously, the on-line securities is a completely new concept which attracts the interest of scholars worldwide to conduct researches on this area. At present, no country has a perfect set of on-line securities law. This thesis will utilize the principles and theories in the traditional securities as the basis, for comparison with the relevant laws of foreign countries with a view to contribute to the future legislation of on-line securities law in our country, so as to protect the economy of our country and the interests of on-line securities investors.The legal issues of on-line securities are new and complex. Nevertheless it does not indicate that the traditional securities law is obsolete. Rather on the contrary, the traditional securities law remains valid although some of it may be inapplicable to resolve the new issues. In fact it is the source of the development of on-line securities. Its applicability to the on-line securities trading will be discussed in each chapter of this thesis. For the purpose of conducting an in depth research on the legal issues, the following issues will need to be discussed: -1. The issues of applicability and enforceability of electronic contract on the first issuance of securities on the internet and on-line securities trading;2. The issues of security on the on-line securities trading system as well as the protection of the investors' interest;3. The issues of electronic signature and electronic evidence for on-line securities;4. The issues of jurisdiction created by the on-line securities trading; and5. The issues of on-line securities regulations.In order to compete with the developed countries in the on-line securities business, the developing country has to build up a secured environment for the on-line securities trading. Its development involves advanced knowledge, which includes new technology on the internet law and finance etc. Besides, the on-line securities trading is still in the early stage of development having inadequate sources of reference, thus, this thesis may be considered to be one having significant degree of difficulty.The on-line securities is a new form of economic activity and there is insufficient theoretical basis for research purpose. In order to facilitate the discussion on this topic it is necessary to use the theory and principle of the law of traditional securities as the basis for comparison. In Chapter 1 we shall focus our study on the legal concept, characteristics and definition of the traditional securities so as to establish the contents of the securities law. Then, we shall utilize the principles and theories of the traditional securities to enquire the possible challenges that may be brought by the on-line securities trading. These legal issues, will be examined...