The Discussion Of Cognizance Of The Crime Of Manipulation Of The Securities And Futures Markets

Price manipulation appears since the securities and futures markets emerge. Withthe prevalence of price manipulation, the interests of small investors in the marketwas badly damaged, the market order has also been severely damaged. Thus, theregulators begin to enact laws and regulations to strengthen supervision of pricemanipulation. Early manipulating means are relatively simple. But manipulatingmeans are becoming more subtle and complex since the supervision efforts increasequickly. Although regulators are strengthening the supervision of price manipulation,price manipulation in securities and futures markets is still very popular in our country.Besides, there are a large number of cases of suspected price manipulation did notreceive treatment. The prevalence of manipulation will ultimately affect theconfidence of investors in securities and futures markets, and ultimately they willchoose "vote with their feet" to leave the securities and futures markets.How to identify the Crime of Manipulation of the Securities and Futures Marketsand how to distinguish illegal behavior with criminal behavior correctly, are the key tofight against the illegal manipulation. The objects of the Crime of Manipulation of theSecurities and Futures Markets are free and fair competition order of the market andthe legitimate interests of investors. The objective aspect of the Crime ofManipulation of the Securities and Futures Markets is the manipulation of thesecurities and futures market and the behavior should be serious as to constitute thecrime. The subject of the Crime of Manipulation of the Securities and FuturesMarkets is general subject, including natural person and unit. The subjective aspect ofthe Crime of Manipulation of the Securities and Futures Markets is limited to directintent.There are some arguments about whether the object of the Crime ofManipulation of the Securities and Futures Markets is simple object or complex objectin academic. Furthermore, some scholars believe that the object of the crime is thesecurities and futures markets management order, which is actually reversed causality. Because of the destruction of the fair and free order of market by illegal manipulation,we need to manage on the market, thus forming management order. The legitimateinterests of investors should be the expectant right of the fair and free competitionorder. Illegal manipulation undermines investor expectant right, so the object of thecrime also includes the legitimate interests of investors.The objective aspect of the Crime of Manipulation of the Securities and FuturesMarkets includes the identifinition of manipulation behavior and gravity of thecircumstances, which is the key to identify the Crime of Manipulation of theSecurities and Futures Markets. Section182of the Criminal Law clearly define thatmanipulation behaviors include chain transaction, Relative commission, wash saleand other way. Chain transaction includes combining sales and successine sales. Thiskind of behavior requires the operators to use the advantage of funds, stocks orinformation of continuous trading. There should be the quantifiable criteria of theadvantage of funds and stocks. The range of information in the informationadvantage not only include inside information but also include all the informationwhich would affect the investment decisions. As long as the perpetrator have access toor have aesier, earlier and more accurate, more complete understanding of theadvantages of information, then the information obtained by the perpetrator are withinthe scope of the information. Relative commission is the oldest of manipulation,perpetrators lure other investors carrying out transactions to raise or suppress stocksand futures prices by false transaction. Relative commission requires that theperpetrator returns to buy or sell the securitie sand futures contracts and thetransactions should have similarities in the same trading day on time, price andquantity. Wash sale means that perpetrator lures other investors trading through hisown false transactions. The ownership of stocks and futures contracts are not truelytransfered. About the save clause other way, it requires perpetrator to implementtransactions and lure investors to carry out transactions through the actual changes oftrading volume. According to the definition of other acts, scalping practice and stable operation are not belong to manipulation behavior of the Crime ofManipulation of the Securities and Futures Markets. Although the subjects of the Crime of Manipulation of the Securities and FuturesMarkets in judicial practice always have special status, the subject of the crime isgeneral subject. When considering about the subject is natural person or unit, weshould first investigate that the behavior depends on whose mind.Since the Crime of Manipulation of the Securities and Futures Markets iscircumstance crime, the subject aspect of the crime is limited to direct intent, whileindirect intent and negligence are not included. Direct intent requires that theperpetrator know that their implementation is illegal manipulation, and knowing thattheir behavior would cause serious damage to the free and fair order ofmarket.circumstance crime circumstance crime circumstance crime circumstancecrimeserious circumstances should be the distinguishing criterion to determinewhether the manipulating behavior constitutes the Crime of Manipulation of theSecurities and Futures Markets.<The provisions of criminal case filing prosecutionstandards (two)> define the standard of serious circumstances by listing thecircumstances, ratio and amount. The distinguish of the Crime of Manipulation of theSecurities and Futures Markets and the Crime of Insider trading and Disclosing insideinformation should start with the object, object aspect and subject. The object of theCrime of Insider trading and Disclosing inside information is the equitable rules ofaccess to and disclosure of information. The object aspect of the Crime of Insidertrading and Disclosing inside information performances as trading, disclosure andrecommendation. The subject of the Crime of Insider trading and Disclosing insideinformation is special subject, which is limited to insiders and other persons illegallyobtain insider information. The distinguish of the Crime of Manipulation of theSecurities and Futures Markets and the Crime of Fabrication and Dissemination offalse information of securities and futures should start with the object, object aspect.The object of the Crime of Fabrication and Dissemination of false information ofsecurities and futures is the trading management system of securities and futures. Theobject aspect of the Crime of Fabrication and Dissemination of false information ofsecurities and futures is the behavior of fabricating and disseminating false information.