Application of securities market
The exploration and application of the market maker system in China began in the securities market. The original "National Automatic Quotation System for Securities Trading" (STAQ) was established in 1990 and 65438+February, and the market maker system was tried out. 199 16 August 200616 August 2006, the STAQ Executive Committee formulated the Notes on Implementing the Market Maker System, and formally implemented the Market Maker System in September of the same year. However, the market maker system exists in name only because it operates in an environment with extremely irregular market rules. The system later stopped running, and the market maker system failed to persist.
(1) stock market
From 1993 to 1994, a number of research reports on market makers have been put forward at the level of Shenzhen Stock Exchange and securities companies, suggesting the establishment of a market maker system in the illiquid B-share market. 65438-0995, the Shanghai Stock Exchange organized a large-scale seminar on introducing the market maker system into the securities market. In the 1999 5. 19 market and the plunge in the second half of 2000, the flight of some institutions led to sharp fluctuations in stock prices. In order to stabilize the market, the issue of establishing a market maker system has been raised again.
China Growth Enterprise Market (also known as the second board market) aims at a high starting point, internationalization and standardization, which indicates that China Growth Enterprise Market will strive to absorb the successful experience of the second board market in developed countries, scientifically design and strictly manage it, and strive to become a standardized, effective, active and innovative financing market. To achieve this goal, it is necessary to adjust the existing system, including the trading system. However, whether to introduce the market maker system and implement the quotation-driven mechanism has caused a wide debate in the securities market, and the views in it are very helpful for us to introduce the market maker system in the futures market. The opposition to the implementation of market makers in China's second board market holds that "the liquidity of China's stock market (measured by turnover rate) ranks first in the world, so it is not necessary to introduce a market maker system aimed at enhancing liquidity."
When China launched the Growth Enterprise Market, it was completely unnecessary to copy the Nasdaq system in terms of trading mechanism, but should continue the trading mechanism of the main board market. The reason is that the continuation of the main board mechanism can reduce the establishment cost of the second board market, simplify the operating procedures, and enable brokers and investors to quickly adapt to the trading environment of the second board market. However, people in the industry who encourage the China stock market to implement the market-making system, their appeal point is not "active market", but "standardized market". "The biggest problem in the China stock market is manipulation, and the market maker system can just curb manipulation." The principle of restraining market makers' manipulation is that those who intend to manipulate stock prices are concerned, unwilling to be "sedan chairs" for market makers, and worried about the selling pressure of market makers; In addition, market makers can also use technical means to stabilize stock prices-when there is an imbalance between buying and selling in the market, excessive buying pushes up prices, or excessive selling pushes down prices, market makers can intervene to stabilize price fluctuations. However, the opposing view is that market makers are actually market makers, and they may abuse their special rights and even collude with other market makers to produce new manipulation behaviors. Anthony Liang, a former consultant of China Securities Regulatory Commission, believes that "there are essential differences between market makers and bankers. The trading behavior of market makers is transparent, while the behavior of bankers is opaque. " Considering the overall environment of the international second board market at that time and its influence on the main board market, the second board market in China has not yet been launched. It may be considered that the mode of introducing market maker system into China's second board market should be a mixed trading mode with electronic automatic matching bidding system as the main part and competitive multi-market maker system as the supplement. For example, in inactive large-cap stocks and stocks with sharp stock price fluctuations, the market maker system can be supplemented, which will not abandon the original relatively formed trading system, but also integrate the advantages of the market maker system.
(2) Inter-bank bond market
It is China's inter-bank bond market that really explores the market maker system with practical actions. At present, the bilateral quotation system implemented in the inter-bank bond market has the embryonic form of the market maker system.
The inter-bank bond market is an important part of China's money market. When 1997 was established, the main body of market transactions was only commercial banks. With the change of market access system, the types of transaction subjects in the inter-bank bond market are constantly enriched. By February 65438, 2002, 945 trading entities had opened 40,000 personal accounts for OTC bonds. Types extend from commercial banks to financial institutions such as financial companies, insurance companies, securities investment funds and securities companies and non-financial institutions as legal persons. The trading theme of the market also extends from national debt to financial bonds, central bank bills and financial bonds, and the varieties are increasingly rich. In recent years, the inter-bank bond market has made remarkable achievements and played an important role in improving the central bank's monetary policy operation system and transmission mechanism, promoting the implementation of fiscal policy, expanding the source of funds for policy banks, and improving the asset structure of commercial banks. At present, it has become an important place to issue bonds for financing, optimize the structure of financial assets and implement fiscal and monetary policies.
There are also some problems in the development of inter-bank bond market, which restrict the further development and function of inter-bank bond market. The most prominent problem is that the market stock is large and the liquidity is insufficient. The trading scale of the secondary market is too small, and the spot trading is not active, which is out of proportion to the demand of the primary market and the huge amount of securities on the market. It is impossible to form a scientific yield curve, which makes the interest rate formation mechanism in the bond market unable to provide accurate and sensitive interest rate signals for the central bank's decision-making, thus affecting the operation of the central bank's open market business and its macro-control role in the national economy. In addition, the proportion of bond assets of many commercial banks is increasing, and the breadth and depth of the bond market can not meet the needs of asset management of commercial banks, which makes commercial banks face potential risks. To this end, the central bank timely put forward the requirement of "gradually establishing a market maker system in development and activating market transactions". At the seminar on bond trading promotion and market maker system held in Shanghai in early 2000, an official of the Monetary Policy Department of the People's Bank of China said that it is necessary to form a unified, deep and broad China bond market and cultivate market makers in market trading activities. Table1:Transactions in the national inter-bank bond market in 2002 Unit: The number of transactions of 100 million varieties is 5363 58%12107.24 50% Repurchase 6781%10/kloc. +0 154% cash coupons 6645 429% 4411.68 426% total 79819 99%118404.438+0366.
China futures market was established in the early 1990s. At that time, social funds lacked investment channels, the futures market was born at the right time, the transactions were very hot, and the transaction records of various exchanges were constantly refreshed. Driven by huge interests, various places are scrambling to establish futures exchanges. In a short time, there are more than 50 domestic exchanges and more than 300 futures brokerage companies. Commodity futures alone reached 9.62 trillion yuan in 1995, and treasury bond futures as financial futures reached 6.2 trillion yuan in 1995, and the futures market was brilliant for a while. In this blind development period, the turnover is amazing, the market scale is large, and there is no shortage of liquidity. On the contrary, the problem facing the market is excessive speculation. Therefore, at that time, the futures market did not have the motivation and development soil to introduce the market maker system.
The overheated futures market has produced a series of social problems, such as repeated market manipulation, fraudulent use of overseas futures, futures speculation by state-owned entities and bank funds, resulting in the loss of state-owned assets. Therefore, starting from 1994, the State Council began to carry out comprehensive standardization and rectification, especially re-approving the pilot units of the futures exchange. In the first batch of 1994 14 exchanges, it was finally identified as 1998 three pilot exchanges in Zhengzhou, Shanghai and Dalian. Re-examine brokerage companies, stop trading most products, and take back the State Council's product listing approval right. Restrict or prohibit state-owned enterprises, financial institutions and credit funds from entering the futures market. As a result, the futures market began to enter the adjustment period. The restriction of laws and regulations has caused the loss of investment groups and funds, and the turnover has shrunk sharply, which has led to a serious loss in the futures industry. In the process of standardization and rectification in the following years, the scale of the futures market shrank year by year, reaching the lowest of 1.63 trillion yuan in 2000, and the trading scale of commodity futures decreased by 83.06% compared with 1.995. The number of futures exchanges has decreased from nearly 50 in 1993 to 5 in 1994, and then to 3 in 1998. The number of futures companies decreased from more than/0/000 above and below the ground to 330 in 1994, and then to 200 at present. In 200 1 year, the futures market achieved recovery growth under standardized operation conditions, and the transaction scale reached 3 trillion yuan, which began to enter a new stage of standardized development. In this way, the trading liquidity of varieties is exposed and becomes the focus of market attention. Facing the crisis of market survival, in order to ensure the successful operation of existing varieties and new varieties after listing, various exchanges began to start with institutional innovation and try to actively trade, and the market maker system in the international market began to attract attention.
In order to improve market liquidity and expand trading scale, the transaction fee reduction policy first appeared in the futures market, and various futures exchanges successively implemented it. The purpose of the reduction policy is to attract funds, stimulate transactions, and at the same time help alleviate the operational and financial embarrassment of member units, especially brokerage companies. This policy is similar to the commercial discount in spot trading, and members whose trading volume and positions reach a certain standard will return cash according to a certain standard. Generally speaking, the reduction policy is aimed at all members. Members are not qualified to choose and have no obligation to quote, but only make requirements for trading volume and positions. Therefore, although its purpose is also to improve market liquidity, it is different from the market maker system in many aspects. The Interim Provisions on Financial Management of Futures Trading issued by the Ministry of Finance 1997 stipulates the reduction and exemption of handling fees, thus solving the practical application problems in accounting and taxation, and objectively establishing its legal status.
Compared with the fee reduction policy, the designated dealer system introduced by Zhengzhou Commodity Exchange in April 2002 went further to the market maker system. Prior to this, Zheng Shang Institute had deeply studied the market maker system and its feasibility in the futures market. And submitted a formal report to the national regulatory agency. Because the market maker system is still a new thing in the domestic financial market, the designated dealer system is introduced out of caution and combined with the main problems in futures trading. Compared with the market-making system, the designated dealer system is universal in terms of purpose and qualification selection, the rights of designated dealers, and the exemption of responsibilities, and the difference lies in obligations. This is the same as the fee reduction policy, which requires the designated dealers to complete the designated volume and positions, and there is no bilateral quotation. This is mainly related to the current situation of futures trading in Zhengshang Institute. The commodity designated for trading by Zheng Shang is the ordinary wheat futures contract. The main contradiction of the lack of liquidity of ordinary wheat is not the lack of quotation, but the lack of capital attention and market competition. On the basis of in-depth research on the market maker system and the measures of designated dealers, in order to welcome the launch of option trading as a new trading tool and ensure its successful operation after the launch, Zhengshang Institute is stepping up the formulation of the Measures for the Administration of Option Market Makers in Zhengzhou Commodity Exchange, and it is determined to implement the market maker system while carrying out option trading. This means that with the listing of options, the market maker system may make a substantial breakthrough in China's financial market. Compared with futures trading, options trading has many trading strategies and complex trading theories, which is called "missile science" of Wall Street. It requires market makers to play their expert role and provide quotations for options. Therefore, the introduction of market maker system has a more important role. Table 2: Statistical period of trading volume of sub-exchanges in the national futures market: 1998 —2002 Unit: 10,000 lots 1999 2000 5438+0 2006 Zhengzhou Commodity Exchange 2002 5828.3873848+0463.821827.