The Research Of Market-Maker System In OTC Market In China

Over-the-counter market in China has experienced the process of prohibition,opening up and supporting development.It has been recognized as an important part of multi-level capital market,and the over-the-counter market also bears the main responsibility for training high-quality listed companies.The market maker system uses the way that buyers and sellers do not trade directly,but the market maker provides continuous quotation for both sides with its own funds and securities,thus improving market stability and liquidity.There is no clear legal guarantee for the OTC market maker system in China,which hinders the further application and effectiveness of the market maker system in China's OTC market to a certain extent.From another point of view,the United States and Taiwan have established a market maker system suited to their actual situation.The United States is a hierarchical and classified market maker system.Taiwan is a recommended securities dealer system.They have laws and self-regulatory regulations specifically for the market maker system,which to a certain extent promotes the prosperity of their capital market.The main body of the paper is divided into four parts:The first part elaborates the basic problems of the market maker system,including the meaning,function,form and operation mechanism of the market maker system.Firstly,the definition of market maker is given,that is,market maker is the main body of a securities market which undertakes the market-making function.It has the obligation of continuously bidirectional quotation for the securities market,and unconditionally trades with customers on the quoted price.At the same time,it bears the legal responsibilities of maintaining market liquidity,alleviating abnormal market fluctuations and holding the market,and accordingly enjoys them.Some special rights guarantee the fulfillment of the above legal duties and obligations.Secondly,the function of market maker system is elaborated in detail.Finally,from the perspective of the development of market maker system at home and abroad in recent years,this paper makes a conceptual interpretation of monopolistic market maker system and competitive market maker system,as well as a comparative analysis of their application in various countries,and draws a conclusion that competitive market makersystem is more conducive to the improvement of the market and the improvement of efficiency.The second part analyses the current situation and existing problems of the market maker system.Firstly,this paper expounds the current situation of the "Securities Law" and the new third board market,as well as the market maker system of regional equity trading market.The Securities Law stipulates the rationality of the market maker system,clarifies the concept of public offering,the conditions of public offering and the conditions of listing,and finally accumulates experience for the regulatory authorities to implement different regulatory and risk prevention systems in different markets,including over-the-counter market.The new third board market maker system mainly refers to the advantages of the market maker system.Regional equity trading market focuses on the practice of market maker system.Secondly,it analyses the problems in legislation and practice of market maker system.This article mainly elaborates that the provisions of Securities Law 39 are vague,the rights and obligations of market makers are not clear,and there are too many obligatory provisions for market makers.The matching rights provisions are unbalanced,the legal protection is not in place,the accountability mechanism is not perfect,the market maker system is not widely used,and the exit channel is not smooth.In practice,the operator system also faces the situation that the market maker supervision is not clear and the supporting facilities of this system are still lacking.The third part discusses the status quo and experience of the market maker system including Taiwan,the United States and the United Kingdom.A comparative analysis of the mature OTC market in the United States and Britain and Taiwan,the provisions on the rights and obligations of market makers and supervision.The Nasdaq market in the United States adopts a mixed trading system model,which gives market makers a wide range of rights in accordance with the principle of balance of rights and obligations.The UK AIM market adopts the application system principle and stipulates the clear quotation principle of market makers.Taiwan Star Bank has strict and clear regulatory requirements for market makers.After comparative analysis,it puts forward the experience of learning the market-making power system in China's over-the-counter market.For example,the over-the-counter market should adopt the market maker system and the market makers in various forms.The fourth part puts forward suggestions for perfecting the market maker system in China's OTC market.Firstly,it is clear that the rights and obligations of market makers are not clear,and the rights and obligations of market makers are clearly defined.Secondly,the over-the-counter market for China is developed on the basis of the original spontaneous development by the government,especially the local government.The rules are not uniform,and the pre-design of the legal system is lacking,so that the current situation of market emergence and slow development proposes to strengthen the supervision of market makers,such as supervision of market makers,supervision of behaviors,and supervision of risks;The operating mechanism of the market maker system,such as the establishment of entry and exit assessment criteria and punishment standards;finally,the choice of market maker mode,the promotion of the market maker system should be promoted,and the hybrid market maker system should be promoted.