Research On The Identification Of Market Manipulation In High Frequency Tradin

High-frequency trading brings liquidity to the securities and futures markets and improves trading efficiency.However,the abuse of high-frequency trading to manipulate the market has also posed great harm to China’s financial market.Due to the lack of clear legal basis for the application of new market manipulation techniques,the criteria for determining the market manipulation behavior of high-frequency trading are vague.In this paper,we focus on how to determine the new market manipulation behavior of high-frequency trading under the traditional market manipulation theory from the "Easton Market Manipulation Case".We will clarify the criteria for determining market manipulation in high-frequency trading from the subjective and objective elements,and analyze the shortcomings of applying the "Miscellaneous Provisions" in determining market manipulation in high-frequency trading.Besides the introduction and the end,this paper mainly consists of three parts.The first part of this article begins with the "Easton Market Manipulation Case",which is the first case in China to identify high-frequency trading as a crime of manipulating the securities market,and combs the results and reasons of the judgment,further analyzes how our courts identify the market manipulation in high-frequency trading,and finally summarizes the focus matters showed in the case.In this paper,there are mainly three focus matters.First,the criteria for identifying the objective elements of market manipulation under the new trading methods are unclear;Second,it is not easy to firmly believe the subjective elements of market manipulation;The third is that the application of the " Miscellaneous Provisions " is inadequate.In the second part of the paper,it mainly concentrates on the legal analysis of the focus issues.First,it analyzes the objective elements of high-frequency trading market manipulation,and analyzes its behavior characteristics,harmful results and causal relationship;Second,it is to analyze the subjective elements of market manipulation behavior,including the subjective motivation of market manipulation behavior in high-frequency trading,the reasons for the obstruction of subjective responsibility and the rationality of objective behavior to presume subjective intent;The third is the analysis and legal improvement of the application of the " Miscellaneous Provisions " in determining the market manipulation,including the uncertainty of the application of the " Miscellaneous Provisions " and the basis for defining "other methods" is unclear.The third part is to put forward relevant measures for the above three problems.First of all,define high-frequency trading and market manipulation,clarify the identification criteria,and strengthen evidence collection.Then,carefully infer the subjective purpose of the actor and reduce the standard of proof of the subjective intention when recognizing the subjective elements again.The third is to improve the rules for determining high-frequency trading market manipulation after clarifying the criteria for determining the subjective and objective elements.The judicial interpretation of high-frequency trading market manipulation is refined,and the supporting high-frequency trading regulatory measures are improved,respectively.