Core Viewpoint - The recent administrative penalties imposed by the Jilin and Anhui Securities Regulatory Bureaus highlight the issue of "rat trading" among securities industry professionals, revealing significant ethical and regulatory shortcomings within the industry [1][6]. Group 1: Incident Details - Two senior IT staff members from Huatai Securities and CITIC Securities were penalized for engaging in "rat trading" by exploiting their system access to obtain non-public information about funds and client accounts [1][2]. - Li Haipeng, a senior manager at CITIC Securities, used his access to the CRM system to conduct synchronized trading with his wife's and sister-in-law's accounts, resulting in a total trading amount of 64.84 million yuan and a profit of 2.13 million yuan from 76 stocks [2][4]. - Shao, a securities professional at Huatai Securities, engaged in similar activities, controlling a trading account that executed synchronized trades on 58 stocks, with a total investment of 31.53 million yuan and a profit of 193,900 yuan [3][4]. Group 2: Regulatory Actions - The penalties for Li Haipeng totaled 4.26 million yuan, while Shao faced a combined penalty of 1.93 million yuan for his trading activities, which included a fine of 300,000 yuan for violations [4][5]. - Both individuals' actions have been characterized as exacerbating information asymmetry in the securities market, reflecting a lack of professional ethics among some industry participants [6][7]. Group 3: Industry Implications - The frequency of "rat trading" incidents has raised concerns about the adequacy of internal controls and ethical training within financial institutions, indicating a need for stronger regulatory oversight [6][7]. - Experts suggest enhancing legal frameworks and increasing penalties to deter such unethical practices, as well as employing big data technologies to improve regulatory efficiency and monitoring capabilities [7].