Considering the emergence of new market entities in the electricity market environment, this paper firstly introduces a distribution company participation matrix to simulate market bilateral trading behaviors. On this basis of traditional load frequency control model, the new load frequency control model based on the distribution company participation matrix is built. Then the distributed model predictive control method is adopted to control the load frequency control model according to the distributed characteristics of the model in the region. At last, a load frequency control model of twoarea ACDC interconnected power grid is taken as an example for Simulink simulation. The results show the established model can effectively simulate the market bilateral transaction process. Compared with CMPC control and traditional PI control, the distributed model predictive control method has better control performance.