(2) be able to maintain the stability and continuity of the market price. Because market makers quote securities after fully studying the value of market-making securities and combining the relationship between market supply and demand, and promise to buy and sell securities at any time according to the quotation, they can reduce price fluctuations and price shocks, thus maintaining the stability and continuity of prices. In the order-driven system, securities prices fluctuate with investors' orders. Excessive buying will push up the price excessively, while excessive selling will depress the price excessively, so the price fluctuates greatly. The securities and futures market is irrational to some extent, and there are a lot of "noise" and "noise" transactions. Excessive reflection of information will have a great impact on the market. At present, the market generally takes some special measures to stabilize prices, such as limiting the order flow, changing the margin, and implementing short-circuit measures. This result will hinder the efficiency of price information and lead to the decline of market liquidity, and market makers have the function of alleviating this price fluctuation. It is important for market makers to bear the crisis of price changes to stabilize prices. It is also important for market makers to handle large orders in time to slow down their impact on price changes and to have preventive mechanisms in advance.
(3) correct the imbalance of the order. In the pure order-driven market, there is often an imbalance between buying and selling orders. Under the market maker system, when this happens, market makers will fulfill their obligations and undertake buying or selling orders, so as to alleviate the imbalance of buying and selling orders and the corresponding price fluctuations. If the price paid by the buyer is temporarily higher than that paid by the seller, the market maker is obliged to sell it with his own account.
(4) Restrain price manipulation. Market makers generally have strong capital strength, follow-up financing ability, high value analysis and judgment ability, and make quotations and transactions on this basis, which makes the manipulators have scruples. On the one hand, the manipulator is unwilling to "sedan chair", on the other hand, he is worried that the behavior of market makers will depress market prices.
It is worth noting that the market maker system can restrain the price manipulation of other traders, but because of its strong strength and interest-driven, it can obtain illegitimate profits through its own behavior or the joint efforts of market makers. This phenomenon has been discovered in Nasdaq market and needs to be prevented by monitoring the behavior of market makers.
(5) Price discovery function. The multi-market maker system will be implemented, and each variety contract will be quoted by several market makers, and the price will be close to the real standard. Because if the quotation of a market maker is too different from that of other competitors, the trading volume will be affected and then eliminated. Because market makers have information advantages in market transactions, they also provide better price information for other market participants, thus promoting the price discovery mechanism of the whole market.