Legal Analysis Of "Fat Finger" Claims Of Everbright Securities

China's securities market has made remarkable achievements since its establishment in 1990.Its total market capitalization,fund scale and trading activity take their place in the front ranks of the world.It provides a strong financial support for China's economic development.With the rapid development of the securities market,various financial derivatives were created,the trading operation also updated constantly.However there were also some issues requiring urgent solution in the process of evolving and growing of the securities market.Especially the number,the amounts and the method of the inside trading are increasing which deeply affected the healthy development of securities market and also seriously affected the real economy of China.In August16,2013 occurred in China the “fat-finger” incident of Everbright Securities which caused by the failure of trading software triggered massive billows in the Chinese securities market.The incident caused great losses to small and medium investors.Investors had won in the litigation on civil compensations against Everbright Securities.This is a precedent which investors win the lawsuit on civil compensations of inside trading in the Chinese securities market.This case reflects many of the problems,but also brings us a lot of enlightenment.The analysis for this case will help us perfect the securities legislative and judicial of our country while has a far-reaching significance to protect investors' interest.After the legal analysis to the “Fat finger” incident of Everbright Securities,combined with domestic and foreign legislative and judicial experience,this article put forward several specific measures for the perfection of our country securities insider trading civil liability system and the improvement of market entities' awareness of accountability and risks.The paper has four parts:The first part introduces the background,significance,methods and innovation of writing this article.The second part introduces the "fat finger" claims of Everbright Securities.Six investors won in the case of civil compensation to insider trading against Everbright Securities In September 30,2015.This case is the first victory for investor in the history of stock exchange in our country.It has epoch-making significance for the crackdown on insider trading behavior and the perfection of the relevant laws and regulations.There are four controversial focus in the case.The third part is the legal analysis of the controversial focus.Firstly,this paper gives an analysis to the “fat-finger” incident of Everbright Securities from three aspects: the subject of inside trading,factors of inside information,behavior of insider trading.Secondly,this paper draw a conclusion that Everbright Securities have subjective fault from the analysis of subjective elements to inside trading.Thirdly,this paper give an introduction to the rules about oblige of civil compensation and injurious consequence from different scope of law.The conclusion is that Everbright Securities caused economic losses to investors.At last,this paper gives an introduction to the rules about the causation of inside trading from different scope of law.It follows that there is a cause and effect between investors' economic losses and inside trading of Everbright Securities.The fourth part is about the revelation which we can obtain from the case.This paper offer legal proposals to the perfection of our country civil compensation system under securities insider trading and the improvement of risk awareness of market subject.Such as: the clearly definition of the subject and information of inside trading;the rational distribution about burden of proof;correct application of defenses;establishment of a diversification of dispute settling mechanism and compensatory mechanism;the improvement of professional ability and risk awareness of market subject.