The Legal System Of U.S.OTC Securities Market And As A Reference When Establishing Chinese Counterpart

A mature securities market system should be formed on the basis of complementary Stock Exchange market and the OTC market which supplement each other and meet multilevel market demands of different market participants. United States, as the most developed country of the world, holds the most successful modern OTC market, including NASDAQ, OTCBB and the pink sheets market which form a sound system of"stairs market". Compared with the U.S. securities market, Chinese securities market is single-leveled, mainly based on Shanghai and Shenzhen Stock Exchange, with almost no OTC market. Therefore, it is necessary to establish a functional comprehensive OTC securities market, referring to the successful experience and practices of that of United States.In this article, the comparative research method is applied as the main method. I first analyze the emergence and development of OTC securities market, then, study the listing and delisting system thoroughly, as well as the market maker system and the regulatory system of U.S. OTC securities market. Finally, I will probe into the legal system of the market and argue on the necessity of the establishment of Chinese OTC securities market, considering the practices of Chinese OTC securities market and the corresponding legislation, in the light of the legal system of the U.S. OTC securities market.This article has six chapters. The first one is the overview of the OTC market, introducing the emergence and development of the OTC market, and it also analyzes the characteristics of the OTC market and the composition of U.S. OTC market. The second part is on the listing and delisting system of U.S. OTC market. In this chapter, special focus is given to the analysis of the relevant system of NASDAQ, and then I will make my own comments on the relevant system of OTCBB and the pink sheets market. In the third, I discuss the market maker system of U.S. OTC market, after the introduction to the market maker system. In the fourth, I analyze the regulatory system of U.S. securities market first, and then study the regulatory system of NASDAQ and OTCBB separately. In the fifth, I view the history and current situations of Chinese OTC market, and argue the necessity of the establishment of Chinese OTC market and setting forth the scheme of Chinese OTC market, consultingU.S. OTC market. In the sixth part, I suggest the establishment of the listing and delisting system, the market maker system and the regulatory system of Chinese OTC market, referring to the corresponding legal system of the U.S. OTC market.