Introduction
The integration of big data, blockchain, and artificial intelligence (AI) with financial regulations, particularly the revised Securities Law, is reshaping capital markets. This article synthesizes key insights from academic and industry experts on these transformative technologies and their legal implications.
Key Discussions
1. Legal Framework for Central Bank Digital Currencies (CBDCs)
Speaker: Prof. Yuan Dasong (Beijing Normal University)
- DCIEP: A centralized digital currency differing from decentralized cryptocurrencies like Bitcoin.
- Unique Features: Supports dual offline payments and two-tier settlement (central bank → commercial banks → public).
- Critical Question: Does CBDC possess monetary multiplier effects akin to traditional fiat? Legislative recognition is essential to define its legal tender status.
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2. Program Trading and Market Manipulation Under the New Securities Law
Speaker: Assoc. Prof. Xu Wenming (China University of Political Science and Law)
- Program Trading: Enhances liquidity and price discovery but risks market manipulation (e.g., high-frequency trading).
Regulatory Gaps:
- Expand oversight to include low-frequency trading.
- Strengthen real-time monitoring and penalties for violations (Securities Law Article 55).
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3. Governance of Internet Securities Platforms and Retail Investors
Speaker: Shi Guanglong (Tencent Financial Research Institute)
- Challenges: Unlike digital payments, securities platforms lack regulatory frameworks to harness technological potential.
Solutions:
- Reduce retail investor costs via compliant fintech solutions.
- Legitimize platforms offering brokerage and advisory services.
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4. Ownership and Protection of Securities Trading Data
Speaker: Li Gengkun (Hainan University)
Data Classification:
- Public Data: Non-exclusive foundational data (e.g., trade volumes).
- Private Data: Proprietary derivatives (e.g., algorithmic trading patterns).
- Legal Reform: Amend Securities Law Article 109 to clarify data rights and usage rules.
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Expert Perspectives
Balancing Theory and Practice
Prof. Zhao Yin (Southwest University of Political Science and Law)
- Smart advisory tools face implementation hurdles due to investor-protection vs. profitability conflicts.
Data-Driven Regulation
Attorney Huang Fang (ZX Law Firm)
- Advocates blockchain-based compensation models for public data sharing.
CBDCs and Market Surveillance
Researcher Yang Guang (CSRC)
- Optimize market manipulation detection using real-time data analytics.
FAQs
Q: How does CBDC differ from cryptocurrencies like Bitcoin?
A: CBDCs are state-issued, centralized, and legally recognized, unlike decentralized cryptocurrencies.
Q: What are the risks of program trading?
A: Potential for market manipulation and systemic instability if unregulated.
Q: Can blockchain improve securities data governance?
A: Yes, through transparent ownership records and secure sharing mechanisms.
Conclusion
The synergy of technology and regulation under the new Securities Law promises enhanced market efficiency but requires agile legal frameworks. Stakeholders must collaborate to address data rights, algorithmic accountability, and investor protection.