Study On The Supervision Of Market Maker

The market maker rule is an outcome of the innovation of Securities System with a history of nearly forty years, which makes a huge success in the market of NASDAQ Stock Exchanges and imitated by many countries. In view of the special function for the rule of securities exchanges, the author proposes to introduce this rule from the aspects of long-term interest and the fulfillment of systematical function. This paper is intended to research the supervision of market maker.This paper has the style of the cross-discipline and the combination of multi-research methods in order to reveal the essence of market maker rule, key points and approaches of supervision from various aspects. The entire paper consists of four chapters:The chapter one describes the basic principle of securities monitoring. Combining the feature of marker maker rule, it specifies the essential and tradition of supervision and summaries the goal and rule of supervision in terms of market maker rule. This chapter is general outline for the entire chapters, and the latter chapters are to make a deep analysis of several key issues in terms of market maker rule supervision.The chapter two specifies the admittance rule for market maker. Besides the description of basic principle of market admittance supervision, the author introduces the competitive rule of market maker and comparison between marker maker rule and banker in order to further reveal the essential of market maker supervision. It also describes the basic condition of market maker admittance, and the market maker needs to establish exit mechanism.The chapter three is to discuss the supervision of market maker dealing rule, mainly focusing on the obligation, rights and liability waiver. Based on the thought of Law, it aims to reveal the relationship between rights and obligation of market maker and the government's roles and its functions in these aspects.The chapter 4 makes an analysis of the most vulnerable issue in the process of market maker supervision, e.g. information disclosure. It focuses on researching the issue of insider trading and market manipulation, which is the most concentrated contradiction. It also proposes the supervision approaches.