Research On Multi-layer OTC Market Mechanism In Binhai Area Of Tianjin

Over the Counter, or OTC market, is where we transact securities outside the stock exchange market in general. It is the most basic one in the capital market. Securities which have access to transact in the stock exchange market must meet certain listing standards, and must be traded by members of the exchanges. They should also deliver a certain amount of commission to the broker members. In this situation, to avoid the more stringent listing standards and reduce transaction costs, OTC came in to being.At present, the most developed capital market in the world is the American one, which contains NASDAQ, OTCBB, and Pink Sheets. They have the perfect complementary and progressive mechanism in the listing standards, the amount of capital structure, and the size of listed companies. In addition, some emerging OTC in Asia isn't constituted by merely a single market. For instance, Taiwan OTC market is composition of two levels. The second chapter compare American three-layer OTC market and Taiwan two-layer OTC market, then it comes to a conclusion that the success of the OTC market cannot do without multi-layer. Multi-layer OTC market provides more choices for the majority of investors and financiers, who meet different conditions can find their appropriate projects in different layer markets. Refinement of the market can provide them with more opportunities.The third chapter makes establishment of Shanghai and Shenzhen stock exchange as watershed, reviews development of Chinese OTC market, and summarizes different types of OTC market in China. The fourth chapter states foundation of establishing multi-layer OTC market in Tianjin Binhai new area, for the construction of the proposed scheme.Finally, the fifth chapter refers successful experience of OTC market in other countries and regions, based on combination with the actual development needs, comes to the construction of the OTC market to:establishment three-layer OTC market based on Binhai new area resources. Tianjin Property Rights Exchange is built as "Chinese pink sheet market", Binhai International Equity Exchange is built as " Chinese OTCBB ", Tianjin Stock Exchange is built as "Chinese NASDAQ", thus forming an OTC market gradually turned up national comprehensive board from low to high. On this basis, we can use transfer mechanism, down-layer mechanism, market maker system, withdraw mechanism, strengthen the propaganda, and support local enterprises, to establish OTC market system that has complementary level, similar pattern and progressive listing standards.