Over-the-counter Market Maker System Research

Our otc market has com from ban to gradually open and encourage developingprocess,at present,it has been regarded as an important part of multi-level capitalmarket,what is more, it is cultivating high-quality listed companies for exchange.Current otc market shares transfer system and regional agents by small andmedium-sized enterprises of the property market."New SanBan" is an important partof stock transfer system."New SanBan" in the past was mainly for the zhongguancunhigh-tech park non-listed joint-stock company share transfer services, represented by"tianjin equity exchange" in regional, adopt a hybrid trading system. But the newexpansion of the scope has broke through the tianjin binhai, Shanghai zhangjiang,wuhan east lake and other regions, the eligible enterprises are expected to enter.Inrecent years,the otc market has brought active transaction records, whether listedcompany quantity and quality, or financing scale, including market-markers, preratioand so on has made great progress as to the beginning of the course.The otc market ismainly based on New San Ban,its scale is still appear smaller,insufficient numberlisted companies,the quality is not so high,deals can sometimes be muchlight,compared with the main board ane gem.Besides，the original inquiry system hasexposed many shortcomings during the operation,cannot adopt to actual needs in otcmarket,we should change this bump and introduction in new trading system,so thatmay injected fresh blood to the market.Empolying market-market system,buyers andsellers no need to deal face to face,but through the market-markers use their owncapital and securities to provide continuity two-way quotation,avoiding the stock cannot flow conditions.In addition,market-markers can play a certain function in themarket-marking and supervision the market,etc.Thus,not only to make the pricediscovery more curb market speculation,also improve the liquidity and stability of themarket,especially in the face of insufficient volume of cases,the market-marketsystem can fully demonstrate its effect.Our otc market,although initially used the market-market system,but only at an early stage,lack of operating mechanism andperfect regulation measures,also no clear legal protection, to some extent hindered themarket maker system in the OTC market’s depth of application and effectiveness ofdeep-seated show.However,throughout the United States,China’s Taiwan region,bothestablished a distinctive market-market system according to it’s conditions,such asdifferent types and levels of market-markers in the United States,Taiwan’srecommended market-markers,etc,at the same time,they have formulated the speciallaw and discipline regulations,to some extent,they promoted the prosperity of thecapital market.Therefore,the purpose of this writing is to give the market-marketsystem a accurate definition,to understand its operating mechanism,advantages anddifferences with the copmetitive bidding system, analysis of the OTC market and theintroduction of barriers to the theoretical and practical foundation and operation of themarket maker system, combined with the current situation in China in order to makepractical legislative proposals in order to play a more market-maker system in ourcountry in the OTC market advantage.