Study On The Influence And Selection To The Number Of Market Makers In NEEQ

This paper mainly studies the problem of the influence and selection of the market makers in the NEEQ.NEEQ was formally implemented to the country in December 2012,The market maker system introduced into NEEQ formally in December 25,2014,It is also the first attempt to make the market maker system in China's securities market?Therefore,whether it is NEEQ or market maker system is a new attempt in the reform of China's capital market?At present,the development of the market maker system of NEEQ in China is facing a dilemma.On the one hand,market making is far less than the number of listed companies,and can not meet the needs of listed company.On the other hand,due to the imperfect market maker system of NEEQ,the number of market makers cannot be determined by market factors,resulting in the current situation of chaotic number of market makers of listed companies.Therefore,it is necessary to study the number of market makers at the theoretical level,to build a theoretical model to measure the relationship between the number of market makers and market performance,and put forward the theoretical method of quantity selection.Providing the theoretical guidance for the listed company to choose the market makers.First of all,this paper systematically elaborated development history,development situation of NEEQ and market maker system.Based on contrasting the current three trading system(protocol trading system,market maker trading system,competitive bidding system)in NEEQ,this paper analysis the problem of NEEQ market maker system at present.Secondly,this paper analyzes the influence of the market maker system on the relevant stakeholders in NEEQ,and starts with the three major stakeholders:NEEQ itself,market makers,and listed companies,and selects five market indicators affected by the number of market makers.(The degree of market competition,stock liquidity,holding costs of market makers,difference in price,and profit of market makers)are used to measure the influence of the number of market makers on the new Third Board market.And,for the smooth development of follow-up research,relevant presuppositions are proposed.Thirdly,based on the study of foreign scholars on the number of market makers,this paper constructs a measurement model to measure the relationship between the above five market performance indicators and the number of market makers(MC model,ILLIQ model,HC model,MMS model And the MME model),and proposes to use volatility to measure the performance of various indicators within the range of market makers.Intersection of the optimal number of market makers in each market is the market maker that maximizes overall market returns.Finally,this article selects transaction data for 89 effective trading days of"Capital Online"(stock code:430074)for empirical research,and uses the model to measure the quantitative impact of the number of market makers on the performance of the five selected listed companies,get its change trend.At the same time,using the method of volatility and overall return,the optimal number of market makers was obtained.Based on the above researches,this paper analyzes the research results and expounds and prospects the application of the research results.