The Study On The Supervision System Of Marketmakers

As a basic trading system for stabling the price fluctuation and improving thetrading efficiency of the securities market,the market maker system has been widelyadopted by the developed capital market abroad.However,the research onintroducing the market maker system into China is still at its elementary stage,beinglimited to the introduction of the foreign securities market and themarket maker system.Furthermore,the studies of the supervision upon the marketmakers are few and far between.Although in recent years securities companies of ourcountry regarded modern investment banking as the main direction and developedbusiness,such as assets reorganization and fund management,to adapt to the reformof both financial system and state-owned enterprises,function as a market maker wasnever considered as the aim which they pursued.Besides,market maker system isn'tmentioned in the relevant official documents concerning the establishment of China's Growth Enterprise Market(GEM).Both the theoretical and practical experience are lacking in this aspect atpresent.As a matter of fact,effective supervision is an important part of the market maker system. Studying on the supervision system of market makers will notonly help to regulate the behavior of the market makers and improve the efficiency ofthe market maker system but also contribute to the sound and stable development of China's securities market.Therefore,the study will,on the basis of empirical,theoretical andcomparative analysis,make a comprehensive discussion on the supervision system of market makers,use the legislation and practices from countries which have mature capital market for reference,draw a personal remark and suggestion on thesupervision system of market makers.