The Research On The Influence Of Market Maker System To The Inter-bank Bond Market In China

The inter-bank bond market in our country has developed a lot since it is set up in 1997, Trading body is becoming rich, trading variety is increasing,and so does the activity of transaction. The inter-bank bond market in our country is becoming the main trading place of financial institutes and the main carrier of the open operation of the central bank, and also the first domestic market which adopted the market maker system , the inter-bank bond market has accumulated experiences of several years.How does the system carry on? What influences have the market maker system had to the inter-bank bond market quality such as liquidity, stability and effectiveness process? Has the market maker system enhanced the market quality? Therefore, the research on the market maker of the inter-bank bond market has profound theoretical and practical meanings.But compared with the foreign studies, the research on the market maker system in our country is still not systematic and comprehensive, and the research has been mostly concentrated in the securities market, the inter-bank bond market maker system theory and empirical research has yet to be riched.Based on the theoretical analysis,this article made use of the high frequency data of two-way quote in interbank bond market to do an empirical analysis on the market maker behavior and the market effect with the help of proper econometric methods.The main conclusion is that the market maker system have played a certain role on the inter-bank bond market of liquidity, stability and effectiveness, but is not statistical significantly, the mechanism to the inter-bank has not been enough obviously, we also should see that as a new thing in inter-bank bond market,the market maker system also operates insufficiently.At the end of the article relevant policy suggestions are given in accord with the existing problems in our inter-bank bond market and the experiences from developed countries.