Research On The Current Issues Of Market-maker System In New Three Board

Building up a multi-level capital market is the main task of perfecting capital market structure at present in china. As an important part of multi-level capital market, new three board has developed rapidly since its opening in 2013. Especially, since the end of 2014 the introduction of market-maker system, the number of quoted companies of new three board increased sharply, the overall volume rose, turnover rate increased significantly, and market trading was active, which had a positive impact on new three board market.Since the market maker system implementation time in the new three board market is not long, it still has some potential problems. In terms of the unity of law, the rules of market maker system business and some provisions of the “Securities Act” conflict and there are some legal obstacles. In terms of relations of market makers, lack of market makers leads to inadequate competition. In terms of rights and obligations, the rights and obligations of market makers have imbalances risk. In terms of market making behavior, the low cost of violations and weak supervision result in frequent violations. Therefore, in order to standardize the market-making behavior, improve market-making efficiency, improve market liquidity. This paper herein investigated and summarized the potential problems of market maker, and learnt from the experience of market makers in mature capital market, made reasonable advice to improve the market-maker system.This paper consists of four parts:Firstly, based on the development of the new three board, the basic theory of market-making system was introduced and summarized. Starting from the concept of market makers, benefit principle, function and role of market makers are summarized. Then the characteristics and pros and cons of different types of market makers are analyzed based on classification.On the basis of basic theory, part II investigated the reason why the new three board market in China adopted a competitive market maker system, and whether they have conditions of transition to mixed system at the present stage. In addition, existing problems of market makers in the new three board were summarized by analyzing the business rules of the market-making system of new three board and the experience of the past year and a half.The typical market-making system of Nasdaq market and Taiwan Emerging market were introduced in Part III, providing reference for improvement of new three board market-making systemFinally, considering the possible affection of internal stratification to the new three board market, the paper put forward feasible suggestions for the development of a competitive market-making system, and explored solutions to potential market-making system based on the mature capital market-making system.