According to the website of the CSRC on the 7th, the CSRC solicited opinions on the pilot provisions on stock market making trading business of securities companies on the science and Innovation Board (Draft for comments). There are 17 provisions on market making, mainly including six aspects: market maker access conditions, access procedures, market making bond source arrangement, internal control, risk monitoring, supervision and law enforcement.
Ping An Securities believes that the introduction of market maker trading mechanism will help to increase market activity and stabilize market fluctuations. For companies with low attention, market makers can take the initiative to make the market to ensure the transaction and increase market liquidity. For stocks with inactive trading and sudden changes in trading volume, when the stock price may rise or fall sharply, market makers can participate in market making, curb market speculation and reduce market volatility. The market making regulations points out that securities companies can buy stocks in the primary market as the source of market making securities, but concentrated and large-scale buying will disturb the price of individual stocks and even affect the operation of the market, and the purchase in the primary market is also limited by the shareholding ratio of laws and regulations. In order to enrich the source of market making securities, the market making provisions clearly specify that self owned stocks, stocks borrowed from China Securities Finance Corporation or other stocks with the right to dispose can be used.
Benefiting from the continuous promotion of capital market reform, the expansion of business scope and optimization of business structure of securities companies will play a more professional and important role in the capital market. Market making business also puts forward higher requirements for the capital strength, pricing, internal control and compliance of securities companies. Leading securities companies with stronger comprehensive strength may have more competitive advantages. It is suggested to pay attention to Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) .
(source: Securities Times)
