The Research On The Influence Of Market Maker System On The Liquidity Of Inter-bank Bond Market In China

The inter-bank bond market is an important part of China’s bond market, themarket maker system is the inter-bank bond market trading mechanism, it is morethan ten years from the introduction to the present, but the market maker system inregulating bonds market, active bond market, as well as to improve throughout theinter-bank bond market liquidity has played an irreplaceable role. Research themarket maker system for how to better use in the future of China’s inter-bank bondmarket liquidity, market maker system is of great significance.Firstly literature persuasion, tell us about the domestic inter-bank bond marketmaker system, drawing on the basis of previous studies, conceived of research ideasin this article. Elaborate course of development of China’s bond market, the threemost important part of the bond market: the inter-bank bond market, the stockexchange market and commercial bank counter market, introduced itscharacteristics, transactions subject. Then a more detailed description of this article focuses on the inter-bank bond market, including the development of China’sinter-bank bond market and the main form of transaction. Maker system, thedescription focuses on the most famous in the market-maker system inventorymodel, information model, the experiences of developed countries maker system.Then the liquidity theory related presentations, introduction of China’s inter-bankbond market maker system, and several factors affect the inter-bank bond market.Yield obtained on the basis of previous literature bid-ask spread is the mostappropriate measure of market liquidity indicators the related impact variablesselected market makers quantity, daily trading volume of the bond price, yieldfluctuations and bond the remaining period. This article is a bilateral inter-bankbond market makers quote data and daily trading data, using a variety ofmeasurement statistical methods of empirical research. The conclusion is: liquidityand market makers the number of the daily trading volume of inter-bank bondmarket, bond prices and bond the remaining period into a positive relationship,while no significant relationship with yield fluctuations.In summary, the market maker system for improving the inter-bank bond market liquidity played a important role, of course, due to various reasons, the use ofChina’s bond market is relatively late start, slow development, the market makersystem there is still a big room for improvement, but after we identify the key, wewere able to study to improve the current situation, we are able to bond markets indeveloped countries by trying to catch up.