Study On The Exchange System Of The New Third Board Market

Capital market is the important place to optimize allocation of resources, but also one of the importantchannels for financing the company conducted. Our multi-level capital market system is made up of themotherboard, small and medium-sized plate, the GEM (growth enterprises market) and the OTC market.Compared to other markets, the OTC market is established at the latest. And gradually the market isdeveloping from the old Third Board market to NEEQ.During the running of the old Third Board market, it has established the related legal system. Becauseof our capital market developing in the early stages and the old Third Board Market being in the earlyprimary, there are many shortcomings, such as poor liquidity, inactive deal, single trading, high barriers toentry for investors and so on. Over the past decade, China’s OTC market is also gradually develop andimprove. The company of NEEQ is established and it is the standard that our OTC market has become anational OTC market. By contrast, the enforcement of the laws and regulations and the perfection of systemof listing and exchange system and transfer board system, it is largely active in the New Third Boardmarket. Those measures enhance the activity of the market, and improve the new third board market.This paper mainly has four parts. Firstly, this paper analyzes the present situation of the new thirdboard market. Mainly discussing the legislative status quo and comparing the old and new exchange system,this part put forward that the highest legal effect files stipulating exchange system are departmental rules inour new third board market. Secondly, comparing to market making system and competing system and thesystem of contract transfer, introducing market making system is importance of the breakthrough in thestock market trading system. Thirdly, the OTC market in China is first established in2001.The old thirdboard market has not got the attention of the market and it develops very slowly. Expanding into thecountry at2012,the new third board market is gradually into view investors. Theoretical foundation of thenew third board market is weak and the lack of relevant experience, it needs to draw lessons from foreignmature new third board market, especially the trading system. This section compared more detailedanalysis on the U.S. NASDAQ market, the European Association of Securities Dealers AutomatedQuotation System. Fourthly, on the basis of the above-mentioned three parts, this paper expounds weaknesses of the exchange system, such as the lack of related system regulation of the new third boardmarket, the lack of relevant supporting documents of Market maker system, the lack of continuity ofelectronic auction. The above-mentioned problems associated with improvement suggestions put forward.Those suggestions recommend that the new third board to revise the scope of the market rules intosecurities laws Lack of market-maker system supporting documents, clear market maker system rules,improve the system of three major trading system directly.The New Third Board Market is not only the place that equity circulation, but also the place ofenterprise financing. It is a fully functional OTC securities market. Therefore, the research of theMarket-maker system has profound significance.