| Summary: | 碩士 === 國立成功大學 === 法律學研究所 === 98 === The long-term ups and downs of securities market make one see that, to stand strong in the volatile environment, apart from the ability to analyze the market accurately, one might also make use of insider trading as the most favorable way of trading. After all, those who hold the unpublished information are in absolute advantage compared with those innocent investors, and are thus bound to win. However, insider trading does great harm to the protection of investors and the regulatory policies which maintain the fair trading of securities market. Therefore, all countries have regulations that prohibit insider trading unanimously, but becasuse this kind of activity is obscure, not easy to be caught and highly profitable, insider trading is still very active in the securities market.
Major insider trading cases happen continuously in the international community, such cases are also often found in our country. From 1990 to 2008, 52 insider trading cases are procecuted, but only 21 of them are found guilty, and 19 of them are not guilty, which means almost half of the cases are found innocent. In practice, the innocent rate of insider trading cases is very high, which makes the criminal cost very low for the defendants. In recent years, our government tries to enhance penalty against insider trading to prohibit this criminal activity which would undermine the fairness of securities market, but the effect is not yet conspicuous.
The domestic insider trading law follows American law and practice. Thus, this article analyzes relevant American regulations and court cases, as well as dicussing Japanese laws and insider trading directives of the European Union. It aims to analyze the standards of insider trading elements in view of comparative law. It will then refer to the aforesaid legislative examples and the change of domestic insider trading regulations to analyze the application of domestic insider trading regulations stipulated in 1988 and its six amendments. Then, it categorizes the subjective and objective elements of insider trading criminal activities to sort out and analyze court cases, discusses the influence of the cases on the explanation and standardization of regulations, and explores the reason behind the high innocent rate of these cases in our country by discussing the differences in definition of such crimes and their regulations. On the other hand, it also discusses the possible influence of the amandments of Securities and Exchange Act based on real cases and opinions from the industry on the determination of insider trading criminal activities afterwards. By using the aforementioned methods, this article aims to observe the gradual amendment of the insider trading regulations and the effectiveness of its deterrence against insider trading activities, and to explore the insufficient part of the regulations.
The conclusion, based on modern regulations, analyzes the amendment of insider trading regulations 2010 and hopes to provide suggestions for determining insider trading activities in investigations and trials. It also discusses the efforts to be made when observing an insider trading case from outside of a company and offers suggestions for preventing insider trading activities from happening inside a company.
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