Research On Market Maker System In China's OTC Market

Since its establishment, Shanghai and Shenzhen, China's capital market development, and made remarkable achievements, the number of listed companies with 14 from 1991 to 2009 7 1 628 end of 18 years increased 115 times accumulatively within the capital markets, equity financing business 2.5 trillion yuan,2.9 trillion yuan corporate bond financing, the development of cities in corporate finance and the allocation of resources plays an important role, has become a major force in promoting economic development. October 2009 GEM visit the Shenzhen Stock Exchange, March 31,2010 launch of margin trading, April 16,2010 launch of stock index futures, which are the development of capital market system, a milestone event. Moreover, the residents of assets structure of major changes have taken place, a rapid increase in the proportion of equity asset class, investors accounts, a significant increase in the number of shareholders as at the end of 2009 the country has nearly 200 million. Development of capital markets makes the level of household wealth has dramatically,2006-2009, China's capital markets three years become the world's fastest growing, highest-yielding emerging markets. Despite these achievements, China's capital market system is still not complete, multi-layer capital market has not fully established. Financing of SMEs are still facing the problem of China's economy, as of March 2009, China's Enterprise in the 9,717,700, equivalent to 5,000 listed companies in Shanghai and Shenzhen times, an urgent need to establish a bottom, the most popular OTC market to solve the financing problem of SMEs. At present, China's OTC market is a regional strong, poor information sharing, low mobility, etc., greatly restricted the economic development. So the next time will be the construction of the OTC market, the government improve the multi-level capital market system focus.Looking overseas OTC market, lack of liquidity can be found all the common problems of low-level market, in order to solve the lack of liquidity caused by the loss of market functions, most of the market maker system are introduced. This is because the structure of the OTC market, for groups with very different motherboard market and market maker system to improve market liquidity, market risk and other combat role more obvious than the auction system, so over the counter market maker system is often used instead of bidding system. In this paper, the basic theory of market maker system, analysis of the current OTC market trading system of China's current situation, combined with the OTC market maker system developed a successful case that the market maker system to solve our existing off-site market trading mechanisms of information opacity, and poor liquidity effective way, and the need for the introduction of market maker system and constraints analysis. On this basis, build a system of China's market maker system. At the same time to promote the establishment of market maker system, we also present the implementation of the system needs to create the conditions for market makers.