STOCK MARKET MANIPULATION AS A COMPLICATED WHITE-COLLAR CRIME: AMERICAN AND UKRAINIAN APPROACHES

Dmytro KAMENSKY

KAMENSKY D. (2023), STOCK MARKET MANIPULATION AS A COMPLICATED WHITE-COLLAR CRIME: AMERICAN AND UKRAINIAN APPROACHES. PHILOSOPHY, ECONOMICS AND LAW REVIEW. Volume 3, no. 1, 257-265

DOI: 10.31733/2786-491X-2023-1-257-265

 

Abstract. The article deals with the separate problems of the formation, interpretation and improvement of the provisions of domestic and American legislation on criminal liability for manipulation on the stock market. An author’s attempt was made to determine the role of the criminal law in ensuring the proper functioning of the stock market. The main economic factors of the criminalization of actions consisting in manipulation on the stock market have been clarified. In the context of state mechanisms for regulating relations in the market economy, relevant regulatory provisions in Ukraine, the USA, and separately in the European Union are analyzed. Emphasis is placed on the legislation and law enforcement practice of the USA as the country that historically has the greatest practical experience of combating prohibited manipulative practices on the stock market.

According to the results of a critical comparison of the norms of the Criminal Code of Ukraine on stock market manipulation with the corresponding American ban, the casuistic nature and ambiguity of the content of the former was revealed. It was established that special regulatory legislation does not improve the situation on the markets, but on the contrary, creating legal uncertainty, repels potential investors in securities.

It was also concluded that the current version of the CC regarding manipulation on the securities market is casuistic (a general meaning is given to an individual case without proper generalization), vague (which is an inevitable consequence of overly imprecise wording) and difficult to understand (confusing). The correct direction of de lege ferenda is recognized as a radical simplification of the criminal law, with observance of both established traditions of domestic legislative technique and effective practices of regulation of stock market relations in economically developed countries.

Keywords: criminal offense, stock market, manipulation, information, securities, deception, public danger.

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