Principles of financial market regulation

Financial market regulation refers to the various regulations made by the state (government) financial management authorities and relevant self-regulatory organizations on the various types of participants in the financial market and their financing and trading activities, as well as organizational, coordinating and supervisory measures and methods for the operation of the market.

There are three principles:

①The principle of openness, justice and fairness: the basic purpose of financial market regulation is to stabilize the market, maintain order and protect the interests of investors. Three public? principle

② stop the principle of reneging: mainly requires all parties to market activities can honestly fulfill their obligations, to eliminate the creation of false behavior, to stop the default, do not keep faith

③ prohibit fraud, market manipulation of the principle: in the principle of open information, any market participant to disseminate false information and concealment of information, will be the formation of fraud, which will result in the investor's wrong judgment , causing market supply and demand or price malfunction. Market manipulators often directly control prices, profiteering, harming the interests of investors and disrupting the normal order of the market. Therefore, the regulatory authorities of financial markets in various countries have strictly prohibited the occurrence of fraud or market manipulation.