The Research Of Stock Options Trading Institution In China

The healthy development of financial markets in China need many things to do as further improving the product structure, enhancing risk diversification, and to accelerate the construction of multi-level financial market system. Overseas stock options market is developing rapidly and has become a major risk management tool in the global financial markets. The introduction of stock options is the effective way for sustainable development of financial markets in China. Therefore, the research of trading institution in stock options market with Chinese securities market environment is good for the introduction of stock options.It is better than qualitative research before that this paper gives a quantitative research of trading mechanism in stock options market with the method of Agent-based computational finance. At the same time the paper learned from the theory of price formation mechanism, the theory of market microstructure and based on the valuable experience of overseas stock options market. We build two artificial stock options market simulation models to research the price and volume in market. One is continuous double auction market based on improved Random crash simulation model and the introduction of China’s securities market warrant pricing model. The other is mixed trading system market based on the idea of market maker information model. The second one is improved on the first one with the action of investor and market maker. We give the compare analyze based on two models and the second one with immediate turnover ratio and the maximum bid-ask spreads limit.Experimental results show that the price volatility in mixed trading system market is lower than in the continuous double auction market, at the same time, the volume is bigger than it. According to China’s securities market environment and investor characteristics, mixed trading system market is good for the developing of the stock options market in China.In addition, European-style options and physical delivery mode can be chosen firstly, the spacing of exercise price can be made with the fluctuations of securities market in China, and the control of market risk can be from the investors’ access.