预防市场操作有价证券交易的方法THEMETHODSTOPREVENTMARKETMANIPULATI

THEMETHODSTOPREVENTMARKETMANIPULATIONONSECURITIESEXCHANGESASLIBASTURKCapitalMarketsBoardofTurkeyApril21,2003IntroductionThecentraleconomicfunctionofmarketsistocreateLIQUIDTY.Investorsfacelotsofkindsofrisksontheprocessoftrade.Informationisavaluablecommodityinsecuritymarket.However,informationcanbegainedlawfullyorunlawfully.Introduction(cont.)Themajorobjectivesofsecuritiesregulationareopen,honestandfairmarkets.Mostoftheregulationoffinancialmarketsseekstopreventmanipulation.SecuritiesActof1933SecuritiesExchangeActof1934Introduction(cont.)TheproblemofmanipulationwasattackedbyCongressinanumberofways;Byspecificprohibitions,BygivingtheSECrulemakingauthorityincertainareas,Byageneralprohibitionagainstanytradingforamanipulativepurpose.ThestatutoryschemeisablendoffraudtheoriesandopenmarketconceptdevelopedintheEnglishandAmericancases.Whatismanipulation?Nosatisfactorydefinitionofthetermexists.Nodefinitionintheregulatorystatutes.Courtsandcommentatorshavesuggestedvariousformulations.DefinitionofmanipulationManipulationmeansanythinginparticular;itmeansconductintendedtoinducepeopletotradeasecurityorforceitspricetoanartificiallevel.Deliberateinterferencewiththefreeplayofsupplyanddemandinthesecuritymarkets.Anypricechangethatresultsfromtradingdesignedtoproducesuchapricechangeisanartificialprice.Definitionofmanipulation(cont.)Theonlydefinitionthatmakessenseissubjective–itfocusesentirelyontheintentofthetrader.Manipulativetradescouldbedefinedasprofitabletradeswith“badintent”–inotherwords,tradesthatmeetthefollowingconditions:(1)thetradingisintendedtomovepricesinacertaindirection;(2)thetraderhasnobeliefthatthepriceswouldmoveinthisdirectionbutforthetrade;and(3)theresultingprofitcomessolelyfromthetrader’sabilitytomovepricesandnotfromhispossessionofvaluableinformation.Traderswhotradewith“good”intent–forthepurposeofmovingpricesinthedirectiontheybelievepriceswillmove–arenotengagedinmanipulation.ManipulationasawhitecollarcrimeThelabel“whitecollarcrime”introducedbyEdwinSutherlandin1940s.Aimedtofosteranintegratedanalysisof‘crimeintheupper,orwhitecollarclass’.Manywhitecollaroffences,likemanipulation,arecomplexandheterogeneousacts.TheveryfirstcaseagainstmanipulationRexv.deBerenger,decidedbytheKing’sBenchin1814.Inthiscase,asamatterofcriminallaw,theconceptofafreeandopenpublicmarketestablished.ManipulationbeforetheSECThepre-casesintheUSaroseinthreecontexts:Criminalprosecution,Litigationbetweenmanipulators,Litigationbetweeninvestorsandmanipulators.Thecriminalattackonmanipulationcameunderthemailfraudstatuteandspecialstatelegislation,primarilyinNewYork.In1933JudgeWoolseyintheSouthernDistrictofNYadoptedtheopenmarkettheory.TheprovisionsofSECstatutesThepurposeofthevariousstatuesandrulesprohibitingmarketmanipulationistopreventactivitiesthatrigthemarketandtherebytopermittheoperationofthe‘naturallaw’ofsupplyanddemand.ThefunctionoftheSECstatuteshasbeentogiveagreaterdegreeofdefinitenesstotheconceptofmanipulationandtosupplyanenforcementandpreventivemechanism.SecuritiesActof1933Accordingtotheprovisionofsection17(a),itshallbeunlawfulforanypersonintheofferorsaleofanysecuritiesoranysecurity-basedswapagreementbytheuseofanymeansorinstrumentsoftransportationorcommunicationininterstatecommerceorbyuseofthemails,directlyorindirectly-toemployanydevice,scheme,orartificetodefraud,ortoobtainmoneyorpropertybymeansofanyuntruestatementofamaterialfactoranyomissiontostateamaterialfactnecessaryinordertomakethestatementsmade,inlightofthecircumstancesunderwhichtheyweremade,notmisleading;ortoengageinanytransaction,practice,orcourseofbusinesswhichoperatesorwouldoperateasafraudordeceituponthepurchaser.AssetsHeldbyInsuranceCompaniesInsuranceindustryhasadominantroleinthecapitalmarketsbecauseofftheirroleasthemanagersofpensionfundsandmutualfundsandthemaindemanderoflongtermbonds.Insurancecompaniesheldassets;BondsMortgagesStockRealEstateOtherTraditionallyinsurancecompaniesheavilyinvestedinfixed-incomesecurities.Secondarypreferenceforlife/insurancecompaniesismortgagesandforproperty/casualtycompaniesisequities.Butforthelastyearstheboominthestockmarketcauseashifttowardequity-basedsecuritiesforlife/insurancecompanies.TheRegulationofInsuranceCompaniesSincetheMcCarran-FergusonActof1945,insurancecompanieshavebeenregulatedbythestates.Stateregulationsincludefirmsolvencyandproductspecification.Whileregulationsvaryfromstatetostate,theyshareatleastthefollowinggoals:PreventinsurerinvestmentinspeculativeassetsEnsurethatassetsarenotvulnerabletodramaticshiftsintheeconomyRestrictinsurersfromcontrolbeyondtheinfluenceofregulatoryauthoritiesAchieve“socialgoals”Topromoteaconvergenceofstandards,theNationalAssociationofInsuranceCommissioners(NAIC)wasformedin1871.Thisorganizationprovidesvariousservicestothestatecommissionersandhasdevelopedthestandardizedexaminationsystemknownasthe“InsuranceRegulatoryInformationSystem(IRIS)”.SecuritiesExchangeActof1934Section9Section10(b)Section15(c)Section9of1934ActOutlawsmanipulativepracticesinconnectionwiththetradingofexchange-listedsecuritiesandalsoprov