Market maker: refers to a dealer who takes a securities business legal person with certain strength and credibility as a franchise dealer in the securities market, constantly quotes the buying and selling price of a certain securities to public investors, makes a two-way quotation, accepts the buying and selling requirements of public investors at this price, and trades securities with investors with his own funds and securities.

Market makers maintain market liquidity and meet the investment needs of public investors through this constant buying and selling. Market makers compensate the cost of their services through appropriate bid-ask price difference and realize a certain profit. Market maker system is also called quotation-driven trading system.

Simply put, the market maker acts as a middleman, and the trader trades directly with him to earn the difference. Since the orderly market-making system was implemented in China from 20 14, only a few brokers have obtained the market-making business qualification.

Compared with the call auction system, the market maker system is conducive to maintaining the liquidity, stability and transparency of the market. At present, in order to speed up the reform of China's securities market, the management has taken measures to actively promote the reform of the market maker system.

The development of market maker system has experienced more than 30 years, which has played a positive role in promoting the development of financial markets in many countries, especially the development of securities and futures. Specifically, the market maker system has the following advantages and disadvantages:

First, improve the liquidity of stocks and enhance the attractiveness of the market to investors and securities companies.

When the scale of a securities market is small, such as the Growth Enterprise Market of A shares, the risk of this market will be higher, and the enthusiasm of investors to participate in securities companies will be greatly affected, especially when the market is in a downturn, investors are more likely to lose confidence.

But with market makers, because they have great economic strength, they can become the main providers of funds needed by the market, especially when market confidence is generally insufficient, they can respond to any business at any time and activate the market. Buyers and sellers don't have to wait for the other party to appear, as long as the market maker comes forward to assume the responsibility of the other party, the transaction can be carried out. Therefore, market makers ensure that trading activities in the market are not interrupted, even when the market is at a low point.

Second, effectively stabilize the market, curb stock price manipulation, and promote the balanced operation of the market.