A Study On The Impact Of Market Makers On The Liquidity Of The NEEQ Market

Since the establishment of the NEEQ market in January 16,2006,it has experienced a series of expansion process and institutional reform has become an important part of China's multilevel capital market.It is of great significance for the construction of multilevel capital market to solve the financing problems of small business.Although the size of the NEEQ market continues to expand,but the overall level of market liquidity is not high,liquidity problems have become a constraint on the sustainable development of the NEEQ market.In this context,the National SME share transfer system decided to introduce market maker quotation system in the NEEQ market,trying to improve the liquidity of the NEEQ market by changing the trading mechanism.According to the theory of market micro-structure,the change of trading system will lead to the change of market structure,and we will study the influence of market maker system on the liquidity of the NEEQ market.By using the exchange rate and spread as liquidity as a measure of market liquidity index,liquidity by using non parametric test and multiple linear of the NEEQ market maker system regression model to analyze and draw relevant conclusions.The article is composed of five parts.First of all,the introduction of domestic and foreign about the relationship between market maker system and the liquidity of the research literature summary;secondly,to interpret the relevant definitions of the NEEQ market and the market maker system,summarizing the practice of summarizing the market maker system;thirdly,through the analysis of the flow effect on three NEEQ market factors for the construction of lay the basic model;thirdly,using non parametric test and multiple linear regression empirical analysis method to further verify the effect of the flow of the market maker system for NEEQ market.Finally,in view of the NEEQ market trading system design problems and give some suggestions.The study found that the introduction of market maker system to improve the liquidity of the NEEQ market to a certain extent,but its effect is limited;because the liquidity is affected by many factors,to improve the liquidity of the NEEQ market should improve the market maker system,reduce investor threshold and speeding up the transfer and hierarchical institution etc.efforts.To measure the liquidity index of the creative use of spreads and exchange rate index of the NEEQ market,through the analysis of factors selected NEEQ listed companies on the transaction data flow on the impact of the NEEQ market;has certain innovative in the index and data selection and the topics.Finally,this paper tries to provide a reference value for the improvement of the trading system and the improvement of the liquidity of the NEEQ market through the study of the NEEQ market maker system and the liquidity situation.