The Legal responsibility and Compensation to Investors in Everbright Securities Fat Finger scandal Abstract: Capital market is a market under the restriction of law. If capital market runs out of control, all participants will be hurt. Although capital market can help build a prosperous economy, investors'interests cannot be violated deliberately. The regulators should largely bear legal responsibility to forbid misconducts driven by the great interest, both subjective and objective. In face of the ahead or lagged laws and regulations, regulators need to exercise powers and perform duties in accordance with not only legal authorization, but also fairness and justice The most important is to guarantee open and transparent environment everywhere, and differentiate and analyze a path towards regulation corresponding to the realistic demands and cost burdens in fact argumentation and interest games. Around the 8 16 Everbright Securities fat finger'event, the teaching case discussed the technique problems due to the arbitrage system, and the short-term fluctuations of the market index by insider trading. In consequence, a broad range of investors suffer huge losses by the hedging trades of Everbright Securities. The case further discussed the legal responsibility behind the severely big swings of the capital market, and civil claims of the two cases derived from the "fat finger case. The true value of the rule of law refers to providing practical basis to the judicial interpretation of insider trading and the civil responsibilities of the use of non-public information trading. Only cast focus on this point, China can make a progress in the rule of law, and thus regulation of modernity will gradually mature in the foreseeable future Key words: Everbright Securities; Fat Finger; Insider Trading; Legal Responsibility; Civil Litigation Claims: Securities law12 The Legal Responsibility and Compensation to Investors in Everbright Securities Fat Finger Scandal Abstract: Capital market is a market under the restriction of law. If capital market runs out of control, all participants will be hurt. Although capital market can help build a prosperous economy, investors‟ interests cannot be violated deliberately. The regulators should largely bear legal responsibility to forbid misconducts driven by the great interest, both subjective and objective. In face of the ahead or lagged laws and regulations, regulators need to exercise powers and perform duties in accordance with not only legal authorization, but also fairness and justice. The most important is to guarantee open and transparent environment everywhere, and differentiate and analyze a path towards regulation corresponding to the realistic demands and cost burdens in fact argumentation and interest games. Around the „8·16 Everbright Securities fat finger‟ event, the teaching case discussed the technique problems due to the arbitrage system, and the short-term fluctuations of the market index by insider trading. In consequence, a broad range of investors suffer huge losses by the hedging trades of Everbright Securities. The case further discussed the legal responsibility behind the severely big swings of the capital market, and civil claims of the two cases derived from the „fat finger‟ case. The true value of the rule of law refers to providing practical basis to the judicial interpretation of insider trading and the civil responsibilities of the use of non-public information trading. Only cast focus on this point, China can make a progress in the rule of law, and thus regulation of modernity will gradually mature in the foreseeable future. Key words: Everbright Securities; Fat Finger; Insider Trading; Legal Responsibility; Civil Litigation Claims; Securities Law