Research on Legal Regulation of Quantitative Trading and Its Improvement Path in China

Shijun Ren

doi:10.54691/9a3qr021

Authors

Shijun Ren

DOI:

https://doi.org/10.54691/9a3qr021

Keywords:

Quantitative trading; Securities regulation; Compensation for damage.

Abstract

As a technology-driven financial innovation paradigm, quantitative trading possesses both the positive value of enhancing securities market efficiency and the potential risk of undermining market fairness, exhibiting a dual nature of efficiency empowerment and fairness challenges. Currently, China's legal regulatory framework for quantitative trading faces core dilemmas such as fragmented regulatory norms, lack of algorithm transparency oversight, inadequate cross-market collaborative supervision mechanisms, and the absence of investor compensation mechanisms. Therefore, it is imperative to address these issues by improving top-level design, strengthening process regulation, optimizing market fairness mechanisms, and enhancing accountability systems, thereby establishing a legal regulatory framework that balances innovation inclusiveness with fairness safeguards.

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