Market Maker System And Futures Market Development

Ten years ago, China's futures market was established in order to service for our national economy. Ten years later, more and more investors have come to familiar with its economy functions such as risk management, price discovery and investment vehicle. The fifteenth plan declared to "steadily develop our futures market", which became a historical moment for China's futures market to make significant growth. Even though we've improved our market regulatory for seven years or so, lack of liquidity and insufficient market size keep being the main obstacles that limit market's better function. As the futures options is introduced, the market shows a much stronger need for s a market maker system, an efficient way to active and regulate the market and provide liquidity.This paper discussed the necessity and possibility of applying the market maker system in our futures market, made a blueprint for China's market maker system and gave its own suggestions on how to make it into realization under the current politics environments.In the first part, this paper began with a thorough and systematic research on market maker system. The futures market maker system is defined based on the securities market maker system. The paper also analyzed the type, function, operation and risk control of this system and clarified the wrong conception of market maker and manipulator.In the second part, the paper gave a wide discussion on the necessity and possibility of applying market maker system, here I did a deep research to supply the governor to make decent policies to futures market.In the third part, the paper analyzed the market maker systems of NASDAQ, where the system is created in the first time and HongKong Exchange, which is more worth studying, as two selected international cases.In the last part, the rough structure of market maker system is exhibited with some useful suggestions as a research achievement.