The Linkage Between Administrative Enforcement And Criminal Justice Of Insider Trading

In recent years,with the continuous development and expansion of China's securities market,its regulatory problems are gradually exposed.A series of fraudulent practices in the securities market,such as "Hang Xiao Steel Structure Case","Easton Market Manipulation Case" and "Wang Jianzhong Market Manipulation Case",have seriously damaged the interests of investors and seriously affected the healthy development of China's securities market.How to restrain the securities crime in the initial stage? Its essence lies in whether the supervision of the securities market has done something.The administrative punishment of the securities regulatory authorities usually means that the behavior is generally illegal.The difference between the securities violation and the securities crime lies in the severity of the behavior and the degree of responsibility,not in the nature of the behavior.This progressive relationship also implies the importance of the cohesion system of execution.Since 2002,the Ministry of Public Security has set up a special securities crime investigation bureau to co-operate with the Securities Supervision Commission(SFC).In recent years,the Securities Supervision Commission and the public security departments have jointly launched several special law enforcement actions to crack down on several types of illegal acts that occur frequently in the securities market.In the Decision of the Central Committee of the Communist Party of Chinaon Several Major Issues Concerning the Comprehensive Promotion of Ruling the Country by Law,adopted at the Fourth Plenary Session of the Eighteenth Central Committee of the Communist Party of China in 2014,it further put forward:"Perfecting the linking mechanism of administrative law enforcement and criminal justice,perfecting the standards and procedures of case transfer,establishing the information sharing,case notification and case transfer system among administrative law enforcement organs,public security organs and judicial organs.Overcoming the phenomena of unshakable cases,difficult cases and substitution fines for criminal punishment to realize the linkage between administrative enforcement and criminal justice.In the development of securities market,insider trading has always been a typical example of securities fraud.If the specific act is suspected of committing a crime,the administrative law enforcement organ will transfer it to the criminal justice organ.Therefore,the study of the connection between administrative law enforcement and criminal justice of insider trading is conducive to further cracking down on fraud in the securities market and maintaining the healthy development of the securities market.The so-called insider trading refers to the illegal act of trading the securities before the insider information of securities trading and the person who illegally acquires the insider information is released,or divulging the information,or suggesting others to buy and sell the securities.Its cases often involve a large amount of money and a wide range of hazards.So,it has always been the object of severe crackdown by the securities regulatory authorities.In recent years,with the development of the securities market,the behavior characteristics of insider trading have changed.The actors take the insider as the core,and gradually extend to relatives,friends,business partners,and even intermediary companies.At the same time,with the development of the network society,the transmission of insider information has appeared the phenomenon of group.Based on this situation,the securities regulatory authorities have strengthened their cooperation with other departments.Firstly,they have further strengthened the "big data" system with exchanges to screen for abnormal trading clues.Secondly,they actively carry out special actions with public security departments to investigate and deal with relevant acts,share information and communicate the case.Thirdly,they conduct joint training with public securitydepartments,procuratorates and courts,and exchange case handling experience.These practices have achieved some results,but there are still some problems to be solved urgently.In the cohesion system of execution of insider trading,there are many problems as follows: First,the phenomenon of substituting punishment for punishment exists in the field of administrative law enforcement.Analyzing the administrative penalties and criminal judgments in recent years,we can find that in the administrative penalties of insider trading,the amount of transaction or profit of many parties has reached the standard of criminal filing,but it has not been transferred.And the cases that enter the criminal record often have reached the "serious circumstances" stipulated in the criminal law.Second,there are differences in the definition of some elements of insider trading between administrative law enforcement and criminal justice systems.There are some differences between the two provisions on the subject of insider information and the sensitive period of insider information,which hinders the transfer of cases.Third,the application of administrative cognizance in criminal trials is still controversial.Because of its particularity,the evidence validity of administrative cognizance has been controversial.However,with the general recognition of the effectiveness of administrative cognizance by courts in recent years,the focus of controversy has gradually shifted to the identification of specific acts in administrative cognizance.Moreover,the conflict between the preconditioning of administrative cognizance and the right of criminal defense brought about by the use of administrative cognizance as criminal evidence has gradually attracted peoples' attention.Fourth,the transformation of administrative evidence to criminal evidence in insider trading cases has some problems.Because of the concealment and professionalism of insider trading crime,it is usually the securities regulatory department that first finds out the signs of violation,conducts investigations,collects relevant evidence,and then transfers it to the judicial organ after judging that it meets the filing criteria.This involves the transformation of administrative evidence in criminal justice.Implementing the cohesion system of execution is of great significance to cracking down on insider trading.It has a great impact on ensuring the healthy development of the securities market and improving the socialist legal construction.Therefore,I took this as the research object of graduation thesis and hope that throughthe collation,induction and analysis of administrative penalties and criminal cases of insider trading cases in recent years,I can find problems and analysis reasons in order to provide a practical and perfect program of connection between administrative law enforcement and criminal justice of insider trading crime.