The Innovative Design of Inter-bank Bond Market System.docVIP

The Innovative Design of Inter-bank Bond Market System [a] Economic and Management Department， Nanjing University of Science and Technology， Nanjing 210094， China. *Corresponding author. Supported by The Ministry of education of Humanities and Social Science project （10YJA630031）. Received 14 June 2013； accepted 12 August 2013. Abstract Presently， the development of China’s capital market is characterized by the slow development of bond market， so the establishment of a multi-level capital market needs more development led by the inter-bank bond market. The content and suggestion of innovative design of interbank bond market are discussed from the macro aspects of distribution system， transaction system， market-maker system and regulatory mechanisms. Key words： Inter-Bank bond market； System； Innovation INTRODUCTION Innovation is the driving force for the development of capital markets， innovation needs to be conducted on both product and market system. The primary cause of the lack of innovation is the system control， a variety of lessons learned show that the improvement in system is the basis of rapid development of financial innovation. To some extent， one of the important contents of financial system innovation is evading system regulation. But if the changes in environment of the system fit the market development， the financial system innovation will provide a development platform for the system innovation and transport a continuous flow of power to business development and innovation. So in China the innovation of inter-bank bond market should first start from macro system mainly. 1. INNOVATION OF ISSUE SYSTEM Currently， China’s bond market lacks fully market-oriented mechanism， multiple regulators exist. The primary issue market is examined， approved and controlled by National Development and Reform Commission， China Securities Regulatory Commission， National Association of Financial Market Institutional Investors affiliated to the People’s， etc. separately.