The Research On Market Making Mechanisms In Stock Options Market

The more developed financial derivatives of a country,the more competitive of the country's financial markets,the more rapid development of market economy.China is in the stage of development of financial markets,the financial reform is deepening.Financial derivatives are also expected to introduce more species.Option,as the main financial derivatives in recent years in China,is active on the international market,also the tools for tools investors' risk control.Therefore,on the time of introduction of stock options,it is necessary to study the trading mechanism in the market of stock options.Based on the approach of agent-based computational finance,our research can provide a reference for the launch of research and stock options market maker trading mechanisms.First of all,this article put the option pricing,agent-based computational finance,market makers and other theories as the theoretical basis for research.Then,this article gives a feasibility analysis for introducing of market maker system theoretically.Using the method of agent-based computational finance to model the behavior of market maker and the behavior of investors,this paper build a monopoly market maker trading mechanisms.And then this paper established a competitive market maker trading mechanisms on the base of the monopoly market makers,designed the behavior of the second market maker.Design of the competitive market maker system for changing the parameters in the experimental,studied the changed parameters how to impact the option price.Finally,this paper analyzed the experimental results between the monopoly market maker and the competitive market maker trading system.Through analysis of the simulation results,this paper found that the results of the monopoly market maker mechanism met the "fat tail" phenomenon.The changes of the parameters had a effect on the option price,the effect of different parameters on the option price is different.Comparison from the results,this paper found that the competitive market maker trading mechanisms had better simulation results than the monopolistic market maker trading mechanisms,but also conducive to narrowing the bid-ask spread.So for the monopoly market maker,the competitive market maker trading mechanisms can make the stock options markets more efficient,and more conducive to the development of the market.