Eastnet reporter Bo Kelin reported on January 9: Since the establishment of the Sci-tech Innovation Board, the market has been operating smoothly and various reform measures have achieved remarkable results. This Friday, the China Securities Regulatory Commission publicly solicited opinions on the “Regulations on the Pilot Business of Securities Companies’ Sci-tech Innovation Board Stock Market-Making Trading Business (Draft for Comment)”. The Sci-Tech Innovation Board will introduce a market maker mechanism on the basis of bidding transactions when conditions are ripe. .
There are 17 articles in the “Market Making Regulations” issued this time, which mainly include six aspects including market makers’ access conditions and procedures, and supervision during and after the event. In terms of access conditions, in accordance with the principle of “secure start and controllable risks”, the securities companies participating in the initial pilot program not only have complete business plans, professionals, and technical systems, but also need to meet capital strength and compliance risk control. There are two conditions in terms of ability: one is that the net capital in the last 12 months has not been less than 10 billion yuan; the other is that the classification rating is A-level and above in the last three years.
What is a “market maker”?
At present, the mainstream trading systems in the capital market are divided into two categories: bid trading system and market maker system. The main board of the A-share market uses a bidding trading mechanism characterized by time priority and price priority, while the Nasdaq and Hong Kong markets use a market maker mechanism.
So what is a “market maker”? A market maker is a trading entity in the market, constantly providing the market with buying and selling prices, and trading with investors with its own funds and securities, thereby providing the market with immediacy and liquidity, and realizing it through the bid-ask spread Certain profit.
Under normal circumstances, market makers are held by large brokerage firms, and they play a role in guiding pricing through two-way quotation.
What is the impact on investors?
For the science and technology innovation board, which is more difficult to price and more professional in pricing, the introduction of a market maker mechanism is very appropriate. On the one hand, it can guide the market to price rationally. Mobility.
For ordinary investors participating in the Science and Technology Innovation Board, the lack of pricing power and analytical capabilities has always been a pain point for retail investors, and market makers can provide them with a relatively reasonable price. Especially for long-term investments, the market maker mechanism can also stabilize market volatility to a certain extent, which is very helpful for stabilizing market prices and stabilizing investor confidence.Return to Sohu to see more
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