Securities Industry Report: Comments on the Market Maker System on the Science and Technology Innovation Board: Effectively revitalize existing assets to increase performance and improve performance stability_ Oriental Fortune Net

Event: May 13, “ThesecuritiesThe Company’s “Science and Technology Innovation Board Stock Market Making and Trading Business Pilot Regulations” was implemented, and the market making system was officially introduced on the Science and Technology Innovation Board.

It is basically the same as the content of the draft.According to the pilot regulations, only the eighth paragraph of Article 3 (Qualification for Market Making Business on the Sci-Tech Innovation Board) shall be included in “The company and its directors, supervisors, and senior managers have notsecuritiesself-employed,margin financingasset management and other major violations of laws and regulations were subject to administrative punishment or criminal responsibility” was changed to “The company has not been administratively punished or investigated for criminal responsibility for major violations of laws and regulations in the past 1 year”, and the relevant requirements of directors, supervisors and senior management were deleted.

The threshold is relatively high, the securities sources include self-operated, borrowed from securities companies, etc., and the market-making shareholding shall not exceed 5%.The main contents of the market maker system on the Science and Technology Innovation Board include: 1) In terms of access, pilotbrokerageIt needs to be approved by the China Securities Regulatory Commission and meets the requirements of continuous net capital of not less than 10 billion yuan in the last 12 months, and the classification rating of the last three years is Class A (inclusive) or above. It is estimated that there will be about 20-25 qualified securities companies; 2 ) In terms of securities sources, securities companies can use their own stocks, borrowed from securities companies, or other stocks that have the right to dispose of them; 3) In terms of risk control, market-making transactions need to be included in the comprehensive risk management system, and risk control should be filled out with reference to self-operated positions Indicators, the market-making shareholding shall not exceed 5%.

In the long run, it will effectively revitalize the self-operated assets of securities companies and increase the thicknessperformanceand improve performance stability.We believe that 1) market makers use the bid-ask spread as their main source of income, and the liquidity of the STAR Market is relatively higher than that of the New Third Board. With the increase in market size, it is expected to increase significantlyBrokerage performanceAnd improve the stability of performance; 2) Brokers can use their own stocks, which will effectively revitalize the positions brought by the co-investment of the Science and Technology Innovation Board and increase the income. 3) The leading securities companies have the advantages of capital strength, risk control ability, technical system, etc., and the concentration of institutional business may be further improved.

Risk warning: The capital market fluctuates greatly; the implementation of the system is less than expected; the market making business is not advanced enough

(Article Source:Tianfeng Securities）

Article source: Tianfeng Securities

Responsible editor: 6

Original title: Securities Industry Report: Comments on the Market Maker System on the Science and Technology Innovation Board: Effectively revitalize existing assets to increase performance and improve performance stability