Market making is becoming more of an option. The market making system of the Science and Technology Innovation Board is currently running smoothly, and the Beijing Stock Exchange will also officially launch market making business after the Spring Festival in the Year of the Rabbit. However, the reporter noticed that the number of market makers admitted by the Beijing Exchange may be limited, and some NEEQ market makers who have a natural relationship with the Beijing Exchange may not have the opportunity to trade with the Beijing Exchange.
The "Beijing Stock Exchange Stock Market Making and Trading Business Detailed Rules" that are currently soliciting public opinions mentions that market makers of the Beijing Stock Exchange need "members of the Beijing Stock Exchange to obtain listed securities with the approval of the China Securities Regulatory Commission." Those who are qualified for market-making trading business can register with the Exchange to provide market-making services for specific stocks after opening the market-making trading authority of the Exchange." The China Securities Regulatory Commission has clarified the conditions for market makers on the Science and Technology Innovation Board in the "Pilot Regulations on the Market Making and Trading Business of Stocks on the Science and Technology Innovation Board of Securities Companies", and it can also be applied to the Beijing Exchange Market.
The picture shows the list of market makers on the New OTC Market
Referring to the qualification assessment of market makers on the Science and Technology Innovation Board, the reporter noticed that the qualification standards of the Science and Technology Innovation Board classify and rate securities companies (AA in the last three years ), net capital (continuously not less than 10 billion yuan in the last 12 months), etc. have higher requirements. However, most of the market makers currently ranking high in the NEEQ market making business do not meet the above requirements. Setting qualification thresholds for BJX's market business based on the above-mentioned higher standards will exclude most of the currently active NEEQ market makers.
In response to the above situation, some industry insiders told reporters from the Financial Associated Press that NEEQ market makers are also looking forward to extending their market making business to the North Exchange market, and it is recommended that the North Exchange market Businesses should appropriately relax the qualification threshold for market makers.
The reporter noticed that Li Gang, chairman of Kaiyuan Securities, and Yan Yanyan, deputy general manager of the equity investment department of Xiangcai Securities and general manager of the market making business department of the equity investment department, all made appeals in public.
Market makers on the Science and Technology Innovation Board can carry out BJX market making business
It can be expected that the qualifications of market makers on the BJX will refer to the standards of the Science and Technology Innovation Board. Securities firms that are qualified as market makers on the Science and Technology Innovation Board can carry out BJX market making business.
Currently, the market makers on the Science and Technology Innovation Board are Shenwan Hongyuan, Huatai Securities, Galaxy Securities, CITIC Securities, Orient Securities, Caitong Securities, Guosen Securities, Guojin Securities, CITIC Securities, China Merchants Securities, 14 companies including Industrial Securities, Soochow Securities, Zheshang Securities, Guotai Junan, and other securities firms are going through the approval process. Data shows that there are 68 NEEQ market makers. Based on this calculation, it is expected that more than 50 NEEQ securities firms will not be able to participate in the Beijing Exchange market for the time being.
The reporter noticed that currently the market makers with the largest number of market makers on the NEEQ include Northeast Securities, Kaiyuan Securities, Essence Securities, Jiuzhou Securities, Capital Securities, etc., but they may not be satisfied with the requirements of the Beijing Exchange for the time being. Market merchant qualifications.
It is understood that the Beijing Stock Exchange is currently carrying out comprehensive mobilization for qualified securities firms, and almost all of the 15 securities firms that have obtained the market-making qualifications of the China Securities Regulatory Commission have expressed their intention to participate in the first batch of market making by the Beijing Stock Exchange. Some industry insiders predict that the first batch of market-making targets on the Beijing Stock Exchange will be about 50, and there may be four or five leading stock market makers, and most stock market makers will be one or two.
It is worth mentioning that the Beijing Exchange has successfully organized market participants to participate in the first full-network test on January 14, and the second full-network test is planned to be organized on February 4 . With the progress of testing, the market trading rules of Beijing Exchange will be officially released soon, and it is expected that market makers can be officially introduced to carry out quotations in the first quarter of this year.
NEEQ market makers are eager for opportunities from the Beijing Stock Exchange
NEEQ market makers have a natural connection with the Beijing Exchange. It is not difficult to find that the companies listed on the Beijing Stock Exchange are all from the New Third Board, and the New Third Board market-making trading system has been in operation for more than 8 years, and the existing market makers have formed mature business development models. A brokerage person summarized to reporters the positive effects that may be brought to the North Exchange if NEEQ market makers join the North Exchange.
First, the active role of intermediaries can be fully brought into play. The stocks of the Beijing Stock Exchange all come from the stock transfer system, and the market makers of the stock transfer system have a very good understanding of the basic situation of the company.
If its market-making qualifications can be transferred to the Beijing Stock Exchange, it will be able to better realize the coordinated development of different fields such as investment banking, market making, and research, and contribute to the rapid development of the Beijing Stock Exchange.
Second, it can enrich the experience to help the development of BJX’s market business. After years of training in the market making business of the stock-to-equity transfer system, market makers in the stock-to-equity transfer system have basically accumulated rich experience in institutional processes, compliance and risk control, etc. Among them, the market risks that the exchange is concerned about, such as insider trading, abnormal stock price fluctuations, own indexes, etc., as long as the exchange has clearly detailed provisions in the business rules and conducts strict supervision and management, the securities firms can pass their own Compliance risk control establishes a corresponding business system and relies on the corresponding functions of the information technology system to basically avoid the occurrence of related market risk problems.
Some people in the industry said that the current market makers in the stock exchange system have basically grown together with the stock exchange and Beijing Stock Exchange, and have made due contributions to market development as intermediaries. At the same time, the Equity Exchange and the Beijing Stock Exchange have also cultivated a number of securities firms that follow a unique development path. Therefore, it is recommended that market makers in the current stock transfer system be allowed to move to the North Exchange and automatically obtain the market-making business qualifications of the North Exchange.
The above-mentioned industry insiders suggested that when setting the qualification threshold for the market-making business of the North Exchange, consideration could be given to setting standards linked to the market-making business of the New Third Board to fully reflect the North Exchange-New Third Board mutual promotion and coordinated development. "We can also add an evaluation dimension to the market-making performance of the New Third Board, rank the New Third Board market makers in the past few years, and allow top-ranked market makers with strong comprehensive capabilities to participate in the Beijing Exchange market."