The Consideration On Introducing The Market-maker Into Our Securities Market

In a mature securities market, there is not only advanced transaction facilities, convenient transaction means and large amount of investors, but also a flexible and effective transaction system. Market-maker is just one of such transaction system. Based on the current situation of our securities market, with the purpose of improving our securities transaction system, this thesis demonstrates the inevitability of introducing the market-maker into our securities markets, discussing the feasible pattern of adopting this system and brings forward some problems that may occur in this system as well as some exercisable measures. The whole thesis divides into three parts. The first part introduces the definition of the market-maker and its history in the overseas markets. The market-maker functions in a quote-driven system, which is different from the order-driven system adapted in our current market. Also the market-maker has notable difference with the market manipulators. In Western mature securities market, the market-maker acts as an important role. By the introduction, we know that it is a trend to adapting the mixed pattern in the world, in which the order-driven system is going to be dominant and the market-maker also plays an indispensable role. Part two emphasizes the inevitability to introduce market-maker. Firstly, the article demonstrates the market-maker in other markets, such as the bonds market during the commercial banks and the property market. Then the article review the market-maker in the present and the past securities market. After the transverse and lengthways compare, the article considers the market-maker has its advantages: improve the market liquidity, keep the transaction continuously and find the value of the certain securities etc. On the other hand, the securities market also needs market-maker with its progress. The character of the OTC market needs to adapt the market-maker system. In part three, the author analysis the problems with the market-maker and then put forward some detailed proposals aiming at the current market. The market-maker holds some stock for making market, but this may lead to market manipulation. Our country has no rules to regulate the market-maker. Considering these conditions, the author gives some advices. Our securities market should adapt the current order-driven system mainly, exercise the market-maker in OTC market, and coordinate the two systems in different market level. In considering the related facilities of the securities market, the authority should regulate the rules of market-maker, cultivate the eligible institute investors and improve the supervising system.