On January 7, the CSRC announced to solicit public opinions on the pilot provisions on stock market making trading business of securities companies on the science and Innovation Board (Draft for comments). The CSRC said that the opinions on the implementation of establishing a science and innovation board and pilot registration system in Shanghai Stock Exchange (hereinafter referred to as the Implementation Opinions) proposed that the science and Innovation Board will introduce the market maker mechanism on the basis of competitive trading when conditions are ripe. Since the establishment of the science and innovation board, the market has operated smoothly, and various reform measures have achieved remarkable results. In order to implement the implementation opinions and further promote the establishment of the science and innovation board and the reform of the pilot registration system, the CSRC has drafted the pilot provisions on stock market making trading business of the science and Innovation Board of securities companies (Draft for comments) (hereinafter referred to as the market making provisions). It plans to introduce the market maker mechanism into the science and innovation board, and now solicits opinions from the public. There are 17 provisions on market making, mainly including six aspects: market maker access conditions and procedures, in-process and post supervision. In terms of access conditions, according to the principle of "stable start and controllable risk", the securities companies participating in the pilot at the initial stage need to meet two conditions in terms of capital strength and compliance risk control ability in addition to perfect business plans, professionals and technical systems: first, the net capital in the last 12 months has been no less than 10 billion yuan; Second, the classification rating in the last three years is above class A (inclusive). In addition, the specific requirements for the business experience and years of practice experience of relevant executives and professionals are to be defined by Shanghai Stock Exchange in the supporting business rules. In terms of access procedures, qualified securities companies may submit relevant application materials for market making trading business to the CSRC. In view of the strong professionalism of the market making trading business and the high requirements on the business, system, personnel and risk control of securities companies, the market making regulations require an assessment of whether the company has the ability to make market. Those who pass the evaluation and test of Shanghai Stock Exchange shall apply to the CSRC, and the CSRC shall approve their business qualification. In terms of market maker securities sources, securities companies can buy stocks in the secondary market as market making securities sources, but centralized and large-scale buying will disturb the price of individual stocks and even affect the operation of the market, and buying in the secondary 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 specify that self owned stocks, stocks borrowed from China Securities Finance Co., Ltd. or other stocks with the right to dispose can be used. The specific provisions shall be formulated by the Shanghai Stock Exchange in consultation with China Securities Depository and Clearing Co., Ltd. and China Securities Finance Co., Ltd. In terms of internal control requirements, there may be conflicts of interest between market making trading business and brokerage, proprietary trading, asset management and other businesses, which may also bring certain risks to market makers. Therefore, the "market making regulations" put forward strict requirements for pilot securities companies. First, improve the business isolation system, prevent the improper flow of sensitive information and strictly prevent conflicts of interest; Second, establish and improve the internal control, decision-making process and check and balance mechanism of market making trading business to ensure the standardized and orderly development of business; Third, strengthen the management of market making trading business, improve the risk prevention and control of honest practitioners and anti money laundering requirements, and prevent illegal acts such as interest transfer, insider trading and market manipulation. In terms of risk monitoring, the introduction of market maker trading mechanism will help stabilize market fluctuations and increase market activity, but it may also help rise and fall and aggravate market fluctuations. Therefore, the "market making regulations" strictly require pilot securities companies from the following aspects: first, bring the market making trading business into the comprehensive risk management system, improve the risk monitoring indicators, and do a good job in business risk prevention and control; Second, establish and improve the monitoring mechanism of abnormal transactions, report special accounts and accept the all-round monitoring of Shanghai Stock Exchange to prevent the impact on market stability; Third, calculate and fill in risk control indicators with reference to the standards for self owned stocks. In principle, the market making shareholding of science and Innovation Board shall not exceed 5%, which shall be specified in the specific business rules of Shanghai Stock Exchange; Fourth, handle emergencies and fulfill the obligation of information submission. In terms of supervision and law enforcement, the provisions on market making make it clear that if a securities company violates relevant laws and regulations and the provisions of the CSRC in market making transactions, the CSRC and its dispatched offices may take regulatory measures and administrative penalties according to law, and authorize the Shanghai Stock Exchange to formulate business rules and implement self-discipline management on securities market making transactions according to law. (outlook new era)