Fairness Tantamount To Protection of Investors in Finan-cial Markets

One of the primary objectives of regulated markets is fairness in Financial Markets. In order to achieve this goal, legislatures have taken two approach regarding fair financial markets. Fairness in procedure and fairness in substantive. In view of some authors, fairness in the procedure is incomplete and may lead to unfair results indeed. And we need to exercise substantive fairness. Most countries take a mixed approach but a reflection of the mixed approach, in practice, is slightly different. To do this, first of all, we define fairness and explain types of fairness as a general concept, then we examine fairness in financial markets regulation including in Iran, US, EU, and Germany regulation and international standard-setting body known as IOSCO. As we see fairness in financial markets is employed in three concepts meaning fair market, integrity, and trust IOSCO (International Organization of Securities Commissions)as an international standard-setting body uses fairness in financial markets and many jurisdictions such as the Iranian legislature in article 2, securities markets Act, 1384 uses the fair market as it is used by IOSCO. In this article, we review some important financial market regulations in light of the Fairness and integrity of financial markets.