Research On Trading Mechanisms In Security Markets

This thesis makes a research on trading mechanisms in security markets. It gives an analysis on the subjects of study of trading mechanisms, the goals trading mechanisms devised for, and the properties of different types of trading mechanisms. and then theoretically analyses price discovery and market efficiency under different trading mechanisms . In view of the situation in security market and the problems caused by order-driven mechanism being used in China ,it puts forward proposals that a trading system be established specially for block trading , trading continue without suspension at noon , price be decided with call trading mechanism at the end of trading in a day and at the beginning of re-start after temporary suspension . Furthermore it also suggests that order-driven mechanism be adopted on the coming Second Market in stead of quote-driven mechanism.