Hello, a market maker refers to an independent securities business legal person who makes financial products by providing buying and selling quotations in the securities market. There are two kinds of market makers: ① a specific market maker, and a security is only traded by a specific market maker; (2) Multiple market makers, and each security has multiple market makers to make market transactions at the same time.

Market makers constantly quote the buying and selling price of a certain security to public investors (that is, two-way quotation), and accept the buying and selling requirements of public investors at this price, and trade securities with investors with their own funds and securities. Buyers and sellers do not need to wait for the counterparty to appear, as long as a market maker comes forward to undertake the counterparty, a transaction can be reached.

: 1. Rights and obligations of market makers

force

-Always meet specific standards for maintaining transactions and fulfilling financial responsibilities.

-Continue to preside over the buyer's and seller's markets, and execute trading orders at the best price according to the price limit.

-Issue effective trading quotations (act as a liquidity provider to solve the problem of insufficient trading volume).

-report the trading situation and make an announcement within 90 seconds after the securities trading is completed.

accountability

For the obligations undertaken by market makers, they should also enjoy the following privileges:

1. In terms of information, enjoy the records of all trading orders of traders and keep abreast of the unilateral market.

2. Priority of margin trading. In order to maintain the liquidity of the market, market makers must always have a large number of chips to maintain the transaction, and have certain funds as the backing, but this is not enough to ensure the continuity of the transaction. For large-scale transactions, market makers must have legal, effective and low-cost financing and securities lending channels, giving priority to financing and securities lending.

3. Short selling mechanism under specific conditions. When most investors do multi-market, market makers have limited chips and must enjoy a certain proportion of short trading to maintain the continuity of trading.

4. Tax relief. Market makers trade frequently and undertake the transactions of buyers and sellers at the same time. They sell for the sake of buying, buy for the sake of selling, and earn profits by buying and selling the difference. It inevitably needs to reduce taxes.