1. As a market maker, a legal person with certain strength and credibility constantly provides investors with buying and selling prices, accepts investors' buying and selling requirements according to quotations, and trades with investors with its own funds and securities, providing timeliness and liquidity for the market and realizing certain profits through the bid-ask spread.
2. Only a vibrant and active securities market can continuously bring impetus to listed companies and investors and promote economic development. To achieve this goal, it is not enough to have advanced trading equipment, convenient trading means and large-scale investment groups, but also to have flexible and effective market mechanisms.
3. The emergence of market maker system means that most main board markets adopt call auction, and most GEM markets adopt market maker system. Market maker system is a kind of securities trading system which is different from the competitive trading mode generally adopted in OTC market.
Characteristics of Market-oriented Business System
1, improve liquidity and enhance market attractiveness. GEM listed companies are generally small in scale and high in risk, which will greatly affect the enthusiasm of investors and securities companies. Especially in the market downturn, most investors are more likely to lose confidence. If there is a market-making system, they bear the funds needed for market-making and can handle any transaction at any time to activate the market. Buyers and sellers don't have to wait for each other to appear. As long as the market maker stands up and assumes the responsibility of the other party, the transaction can be carried out. Therefore, market makers ensure uninterrupted market trading activities even when the market is at a low point.
2. Effectively stabilize the market and promote the balanced operation of the market. Market makers have the responsibility to participate in market making when the stock price rises and falls sharply, which is conducive to curbing excessive speculation and playing the role of market "stabilizer". In addition, the competition between the market and the business system also ensures the stability of the market to a great extent.
3. It has the function of price change discovery. Market maker's quotation is formed on the basis of comprehensively analyzing the information of all market participants and measuring their own risks and benefits. Investors make decisions according to the quotation, which in turn affects the quotation of market makers, thus pushing the securities price closer to its actual price.
4. Correct the imbalance between purchase orders and sales orders. 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 fulfill their obligations and undertake buying and selling orders to alleviate the imbalance of buying and selling orders and the corresponding price fluctuations. If buying temporarily exceeds selling, the market maker is obliged to sell with his own account.
5. Restrain price manipulation. Generally speaking, the market maker system has strong capital strength and subsequent financing ability, high value analysis and judgment ability, and makes quotations and transactions on this basis, which makes operators have scruples.