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, many research reports on market makers have been put forward at the level of Shenzhen Stock Exchange and securities firms, suggesting the establishment of a market maker system in the illiquid B-share market. From 65438 to 0995, the Shanghai Stock Exchange organized a big discussion 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, design scientifically and operate strictly, 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 the inter-bank bond market in China that really makes practical actions in exploring the market maker system. 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 enterprises, insurance enterprises, securities investment funds and securities enterprises 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 great 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 crisis. To this end, the central bank timely put forward the requirement of "gradually establishing a market maker system 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 was necessary to form a unified, deep and broad China bond market and cultivate market makers.
Table1:Transactions in the national inter-bank bond market in 2002 Unit: 100 million yuan.
The number of varieties traded is 536,358%, 65,438+0265,438+007.2450%, and the repurchase is 67,865,438+065,438+0%,1kloc-0/885+0/. 38+0999%118404.5438+01%In order to further enliven bond trading, the inter-bank bond market launched the bilateral quotation business on March 6, 2000. In order to promote the development of bilateral quotation business, improve the liquidity of the inter-bank bond market, and promote the standardization process of the inter-bank bond market, on April 30, 2000, the central bank issued the Measures for the Administration of Bond Trading in the National Inter-bank Bond Market, clarifying that financial institutions can carry out bilateral quotation business of bonds upon approval. In April, 20001year, the People's Bank of China issued the Notice on Issues Concerning Standardizing and Supporting Bilateral Quotation in the Inter-bank Bond Market, which clearly regulated the qualification identification, business scope and relevant policy support of quotation providers. On July 25th, 2000/kloc-0, nine banks, including China Industrial and Commercial Bank, China Agricultural Bank, China Bank, China Construction Bank, China Everbright Bank, Yantai Housing Savings Bank, Beijing Commercial Bank, Nanjing Commercial Bank and Wuhan Commercial Bank, were approved by the central bank to become bilateral bidders in the inter-bank bond market. The obligation of bilateral quotation providers is to continuously report the bilateral prices of buying and selling bonds at the same time during bond trading. The liquidity of the inter-bank bond market has been improved to some extent under the impetus of bilateral quotation providers. The trading volume of spot bonds in the secondary market has been rapidly enlarged. This is a useful attempt of the market maker system in China's financial market. Judging from the situation in the year of its launch: 1 to July, the amount of settlement in the interbank market and the number of settlement transactions were 22.909 billion yuan and 367 respectively; From August to June 1 1, the settlement volume and the number of cash transactions were 370.265438 billion yuan and 634 transactions respectively. Moreover, the cash transaction volume of bilateral quotation providers is obviously in the front. By the end of 65438+February, the top three spot bond transactions in 200 1 period were Nanjing Commercial Bank, Wuhan Commercial Bank and Agricultural Bank, all of which were bilateral bidders; Six of the top 10 are bilateral bidders. On the whole, the inter-bank bond market settlement was 30.7 billion yuan in the year when 1997 was established, and it increased to 1632 1000 billion yuan in 2000. In 2002, the settlement of bond transactions in the national inter-bank bond market exceeded10 billion yuan, reaching 1 18400. If the rate of progress of the money market is measured by the ratio of the transaction volume of the inter-bank market to GDP, the transaction volume of the inter-bank bond market in 2002 is equivalent to the GDP of China in that year. This ratio has reached the average level of newly industrialized countries, indicating that a mature inter-bank bond market is taking shape. The bilateral quotation system has played an important role in the rapid development of the bank bond market, which has been proved and recognized by the market.
Research on the Development and Application of Futures Market
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 period of time, there are more than 50 domestic exchanges and more than 300 futures brokerage enterprises. 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 period of blind progress, the turnover is amazing, the market scale is large, and there is no lack 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. The first batch of 14 exchanges was confirmed on June 10, and three pilot exchanges in Zhengzhou, Shanghai and Dalian were finally confirmed on June 1998. Brokerage enterprises have been re-examined, most trading varieties have been stopped, and the right to approve the listing of varieties has been taken back to the State Council. 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 enterprises has decreased from more than 1000 above 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 progress. 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 ease the operating and capital embarrassment of member units, especially brokerage enterprises. This policy is similar to the commercial discount in spot trading, and cash return is implemented for members whose trading volume and positions reach 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 the Management of Financial Operation of Futures Trading issued by the Ministry of Finance 1997 regulates 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 conducted an in-depth study on 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 was introduced out of caution and combined with the urgent problems in futures trading. Compared with the market maker system, the designated dealer system has common norms in the purpose, qualification selection, rights and liability exemption of designated dealers, and the difference lies in obligations. This is the same as the fee reduction policy, which requires the designated dealers to complete standardized trading volume and positions, and there is no bilateral quotation. This is 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 key 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 theory, which is called "missile science" of Wall Street, and requires market makers to play their expert role in quoting options, so 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.
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