As the Interpretation on Law for Handling Criminal Cases Related to Manipulating Securities and Futures Market and the Interpretation on Law for Handling Criminal Cases Related to Taking Advantage of Undisclosed Information for Trading jointly issued by the Supreme People’s Court (SPC) and the Supreme People’s Procuratorate (SPP) are to put into force, Dalian Commodity Exchange (DCE) holds a session on studying and discussing new judicial interpretations on the morning of July 2. Market surveillance and law affair staffs are organized to make an in-depth study on the new judicial interpretations. Arrangement has been made on how to display the joint forces of “5-in-1” regulation and intensify the market regulation according to the market situation.
The session believes that the issuing of the new judicial interpretations will offer clearer legal ground for punishing crimes related to manipulating the futures market and taking advantage of undisclosed information for trading. And it will provide more powerful legal protection for punishing and preventing futures-related crimes, keeping away and defusing financial risks, maintaining the market order, protecting investors’ legitimate rights and interest, fueling the sound and stable development of the capital market, and building a standard, transparent, open, dynamic and resilient derivatives market.
Unlawful practices like “manipulation by spreading misleading information”, “manipulation of scalping trading”, “manipulation of spoofing” and “manipulation of cross futures/spot markets” have been added in the new judicial interpretations. These have, together with the unlawful practices specified in Article 120 and Article 182 of the Criminal Law, constituted a relatively perfect regulation on crimes related to manipulating the securities and futures market and engaging in insider trading. And the standards for identifying violation cases where circumstances are serious and particularly serious have been made clear. The session requires all market surveillance and law affair staffs of the exchange to study the Criminal Law and the new judicial interpretations and grasp the specific provisions and the spirits of the rule of law on one hand and to be guided by the new judicial interpretations to exercise strict regulation in accordance with the self-regulatory rules of the exchange on the other hand.
The session emphasizes that market regulation staffs should assume their responsibilities, well implement the requirements on “preventing major financial risks” and “handling risks in key fields accurately and effectively” from the political stance of “staying true to the mission”, and attach great importance to market surveillance and risk prevention. They should respect the rule of law and fulfill their duties by sticking to the principle of governing the market and regulating by law; they should respect risks and focus on preventing and defusing major financial risks by adhering to the bottom-line thinking and taking scientific approaches; they should give full play to the roles of sci-tech regulation and penetration-style regulation in self-regulation and improve their capacity of accurate regulation and further enhance their regulation level.
The session has made deployments on further displaying the joint forces of the “5-in-1” regulation, connecting the self-regulation with administrative regulation and strike on crimes, and investigating and cracking down on market manipulations and other violations. And it has arranged for screening and dealing with violations and timely reporting suspicious clues.