Civil liability for illegal speculation In Iraqi financial markets (A comparative study)

Abstract

The rules of civil liability establish general principles, intended to apply to every error that results in damage to a right or interest recognized by law, so special laws come to attribute it to its subject matter. However, this was not achieved by the Iraqi Interim Law on Securities Markets No. 74 of 2004, concerned with illegal speculation. From its penal side and the responsibility resulting from it, leaving its civil side and responsibility for it, without special regulation, which prompted us to research it. Especially since trading operations in the stock market, and the deals that take place in it, follow a special method of trading, which makes it difficult to prove the error and error and its relationship to the damage that occurred, as several parties face all orders to buy and sell securities offered in the market, which leads to following the display mechanisms. And demand to determine the prices of those papers. What is most distinctive about market transactions from the usual is that their parties usually do not know each other, as market transactions are based on the trader issuing an order to his intermediary to carry out a trading process in accordance with market procedures. Therefore, the question we tried to answer in the research was the extent of the effectiveness of the theory of civil liability in achieving justice that was violated by illegal speculation in the financial markets. In Iraq, the Iraqi Securities Markets Provisional Law No. 74 of 2004 prohibits illegal speculation. Section (5/13) requires brokers to: "...obligate to do the following:...d - Refrain from participating in false and fraudulent transactions and all forms of market fraud, as well as any actions or practices that mislead or deceive investors or create a false and misleading impression of the market's effectiveness." While the Iraqi stock market aims to enhance investor confidence and interests, and to regulate and facilitate fair, efficient, and organized trading in financial securities, the law, although intended to protect investors, does not provide for compensation for those harmed by illegal speculation.