The Present Situation Of Chinese OTC Equity Market And Legislative Suggestions

The stock markets and OTC equity trading markets are an integral part of the securities market. In recent years, as China’s gradual liberalization of the capital market, as well as the construction of multi-level capital market of national initiatives, since2010, and especially since2012, China’s OTC equity market has been considerable development. And developed into a national SME share transfer system operators the carrier of the national market, commonly known as the "new three board", which is the third board market, and in the provinces of regional equity market operators support regional equity markets (commonly known as the "four board market.") and brokerage OTC (OTC securities) market, three different operators plate. Especially the new three-panel market and regional equity market is developing rapidly in recent years, making China’s capital market is an important part of expanding, continuously enhance functionality for our transfer mode, and implement economic policies and structural adjustment of financing the development of SMEs, is playing an increasingly larger role. Correspondingly, the risk control and processing of OTC equity market in the awkward position of law and its rapid development has brought. At present, China’s current securities law to regulate the venue exchange main market-based, legislative capacity is huge for serious deficiencies in the OTC market, the most outstanding performance in the absence of the overall design of the OTC market, which is not conducive to our multi-level establishing capital market system, nor conducive to the healthy development of China’s capital market. In the developed capitalist countries, and explore multi-level capital market has already been completed. America, area of our country Taiwan and OTC securities market in the UK with the same purpose and positioning of China’s OTC equity trading market, the difference is that these well-developed capital market countries (regions) are included in the OTC equity trading securities legislation in the country implemented within an exchange, securities regulatory authorities by the national regulators, but took a different regulatory regime. Legislation on legislative and OTC equity securities trading market has very good reference. The author through years of business practice, deeply felt this vast market prospects and the national introduction of appropriate legal regulation urgent. In this paper, by exploring on Accelerating China’s OTC equity market legislation,establish and improve the proposed top-down laws, administrative regulations, departmental rules and local regulatory system, a clear legal status and supervision vested in the OTC equity market, the establishment of effective law enforcement, illegal disciplinary mechanism for OTC, exchange market interdependence between the market so structured, orderly flow together to form China’s "multi-level equity market" and multi-level capital market.