Research On Inter-bank Bond Market Maker System

After established in 1997,the inter-bank bonds market has developed quickly,and now has became the main issue and trading place of the treasury bonds, financial bonds and others,Up to now about 70% bonds have been trading at this market, and a brige which link between the money market and capital markets .As the main part in bonds market, the function is more intensely cared by the People's Bank of China and the Ministry of Finance. In July 2001, PBC authorized nine commercial banks as the market maker of the inter-bank bonds market, to quote double-side price to the other trader in the market, which indicate the establish of mechanism of market maker in China inter-bank bonds market. In February 2007, to improve the national inter-bank bond market maker system and enhance the liquidity of the market, market price discovery, and promote the development of China's bond market.and the People's Bank of China promulgated and implemented the "Regulations on Management of the national inter-bank bond market Maker" .The target of this action is aimed to enhance the liquidity of trading bonds and improve the development of the market, which can facilitate the execution of the money policy for PBC. Not only theory field, but also supervision stratums recognize the importance of the new mechanism. Now it is a very urgent problem and becomes key problem of restraining the further development of bonds market.Maker of China's bond market is in the bond market with the strength and credibility of corporate bond business. The level of these operators are willing to continue in its corporate transactions are reported to the purchase price of certain bonds and the actual selling price. and the level of acceptance of the public offer by the sale or other transactions, to ensure the timely turnover. The so-called market-maker system means certain regulatory system, Maker of stock and bond holders of certain bonds this commitment to maintaining a system of two-way transactions. From the inter-bank bond market maker system was established to now, the years of experience have shown the importance of the implementation of market-maker system. However, after years of development, market-maker system in the city so efficient, market size and structure of the city so there are still obvious constraints, not really played its due role : Maker carry lack of motivation; Maker of the price discovery function significantly enough; the number and types of existing Maker difficult to meet the market's needs.Given China's inter-bank bond market maker system status, learn from the foreign bond market that suits the actual conditions of China and relevant experience, Maker of China's bond market to improve the system without delay. Establish sound and efficient inter-bank bond market maker system will help active bond market balance between stability and the bond market, for price discovery and the yield curve shape. This paper is taken as a starting point for the study and exploration. These inter-bank bond market to further improve our market-maker system, with the reference value and practical significance.In this paper, the theory of Maker sorted out, summed up the results of previous studies. On the basis of a comparative analysis of the foreign bond market maker system and our enlightenment, Maker of China's inter-bank bond market in the development of the system. Finally, the bond market maker system to perfecting some of the recommendations. Specific details are as follows :The first is primarily associated with the theoretical basis for Maker sorted out at home and abroad, on the theory summarized Maker, has laid a good groundwork for the start of the text.Chapter II is mainly to the United States, the euro area, Japan, the Republic of Korea and other countries and regions in the government bonds market maker system for comparison. A comparative analysis of economic development in different countries and under different policies to support the development of market-maker system. from the inter-bank bond market and the treasury bond market with some of our research into the common system of inter-bank bond market Maker the nature, characteristics and mechanisms, summed up the inter-bank bond market maker system suited to China's experience and practice. Chapter III of the general theory on the basis of market-maker system. China's inter-bank bond market maker system for the development of the analysis. Chapter 4 is the Proposal for our inter-bank bond market maker system.