Using An Artificial Financial Market For Assessing The Impact Of Regulatory Policy

Financial market is important part of economic system, which maintaining the stability of the financial market and effective financial risk management is the core aim for the supervision department of financial risk. However, market is a complex system, implementation effect of regulatory policy have some uncertainties. So if can accurately evaluate policy, which may bring market reaction, it will directly make regulators formulate to scientific and reasonable policy decisions.This paper, according to the standards of Computational Finance, design a artificial financial market model that is consistent with China’s national conditions, the model can also show China’s investors heterogeneous investment behavior. We analyze model’s robustness that the researchers rarely involves both at home and abroad, which include sensitivity strategy coefficient, response coefficient and strategy memory degree. Finally, the article focuses on the implementation effect of transaction tax under simulation studies in three scenes, it provide scientific, systematic and comprehensive theoretical basis for regulators using transaction tax policy.Artificial financial market can produce some characteristics that are similar to real market, for example, time series data is smooth and don’t obey the normal distribution, also exist linear characteristics and nonlinear characteristics, which nonlinear characteristics of time series data comes from ARCH process. Robustness analysis show sensitivity strategy coefficient, response coefficient and strategy memory degree have different impact to financial market. First, when market does not exist the tax, stable power of market is the fundamental trading strategies, and instability factors of market are because of technology trading strategy. Secondly, The tax policy can control the volatility, which it influence the cost of invest, rate of buying and selling, the flow of funds, this view is same to tobin’and Keynesian’. Meanwhile, The tax policy not only hit the short-term traders, also it weakens the stable market power, so the effectiveness of the market depends on that it is gap of the stable market power and the power of the speculators, which is the view of the opposition.Regulators should be comprehensive consideration of the implementation of three aspects of the market, which there are the tax policy to market volatility tax the influence of the tax, prices to deviate from the degree and market environment, which find out the balance, tax policy make ensure market effective and orderly development.