A Study On Market Maker Supervision System In The New Third Board Market

Capital market in China presents a “inverted pyramid” structure,the main board market is hot,butthe OTC securities trading market is cold and cheerless,a large number of small and medium-sized enterprises get financing in difficult. Since the end of 2013 the new three board market expansion,a large number of small and medium-sized enterprises pour in,and got a lot of attention. So far in the new three board market listed companies have broken through 5000,the new three board market is a new road for these small and medium-sized enterprises to get rapid financing and come true free floating shares. But the development of the new three board market is not so smooth,there are so many problems gradually exposed,for example,poor liquidity,difficulty valuation,irregularities and insider trading. Trading system and supervision system of market rules are necessary to reform.The new three board market adopts the transaction system of consultation in the beginning,but the system exposes some problems,like low transparency,low efficiency of the price discovery and negative investors. In order to improve the liquidity of the market and raise the enthusiasm of investors, the market introducemarket maker On August 25,2014. It truly played a positive effect in improving liquidity, finding the shares' value and maintain the market stability. But market maker also have market-risk,including moral risk and operational risk.The marker-risk of market maker is inherent,it can be avoid only by improving transaction system and supervision system. The article generalizes the market maker' supervision system of the new three board market,and connects the practical situation with the advanced experience of the supervision system of domestic and foreign markets,and analyzes the loopholes and shortcomings for the supervision system of the market maker. Finally,the article put forward some suggestions to improve the supervision system.The constitute of the article is the following:The introduction introduces the background,purpose,review,methods and innovations.The first part is a summary of market maker, which analyzes the advantages and market-risk about market maker, is the meaning and theoretical fulcrum of the article.The third part mainly introduces the supervision system and problems of market maker, and analyzes the laws and regulations, supervision subject, regulatory measures of the supervision system of market maker of the new three board market.The fourth part mainly puts forward some suggestions by combining the realistic situation with other supervision experience of market maker, to ensure market makers can exercise rights and obligations reasonable, so that make market maker plays due role.