Research On The Effect Of Market Maker System In China’s Neeq Market

The "new three board" is called National Equities Exchange and Quotations,NEEQ.It is an important part of Over-the-Counter market in China.At the beginning of its establishment,it is an opportunity for high-tech growth companies to improve shares liquidity.Then SRC set up an agency called share transfer system,it is a shares transfer platform for unlisted companies which in Beijing Zhongguancun science park.After then the new three board market expansion to the nation,it becomes a national shares equity trading platform which for non-listed limited companies by shares.Although the new three board market in China has made great development,but since the establishment of the new three board market,the problems gradually exposed.For instance,the market volume was bleak,the liquidity was deficient,the stability was weak,which makes the new three board market did not achieve the desired height.The new three board market formally introduced market-maker trading system on August 25,2014,since before it had been using the agreement transfer system.On the one hand.we can find that after introducing market-maker system,the new three board market trading activity has been significantly improved;On the other hand.from the perspective of the development of the international securities market,the market-maker trading system is indispensable in the OTC market.It is the inevitable outcome when the securities market developed to a certain stage.Market-maker system can improve the market liquidity, stability and market efficiency.Therefore,in draw lessons from the successful experience of the developed OTC market,we study the market-maker system in the new three board market has positive significance.In this thesis,we study the influence of market-maker system to the new three board market,which divided into five parts.The first part is introduction,which introduces the research’s background and significance,literature review,research’s ideas and methods;The second part introduces the basic theory of the market-maker system,recalling the market-maker system from content,features and theoretical basis.Elaborating the market-maker system can improve the liquidity,enhance the stability and improve the efficiency of the market from the theoretical aspect;The third part is the brief introduction of market-maker system in the developed OTC market,and analyze its significance to the new three board market.It mainly analyses the American NASDAQ,Japan JASDAQ and Chinese Taiwan emerging market.We find that the market-maker system can improve the market trading activity to a certain extent,and improve the position of OTC market in the capital market system;The fourth part is the empirical study of the market-maker system in the new three board market,mainly from three aspects of liquidity,stability and market efficiency.Through the empirical study,we find that the new three board market’s liquidity has been raised,stability has been enhanced and market efficiency has been improved after introducing market-maker system;The fifth part is the conclusions,recommendations and research prospects of this thesis.The new three board market can practice competitive market-maker system,and then transition to the hybrid market-maker system.