| Under the background of the rapid development of high-frequency trading,this paper studies the impact of high-frequency trading on market stability by simulation.This paper analyzes the influence of high-frequency trading on the stability of the stock market by constructing an order-driven general stock market and using simulation data.We use the method of agent-based computational finance to simulate the operation of the stock market.In this paper,the artificial stock market is simulated by setting the parameters in the model.Firstly,we analyze whether the data generated conforms to the styled facts of the financial market.Secondly,we test the robustness of the model and use the data generated to analyze the impact of high-frequency traders on the market stability.This paper finds that high-frequency traders have a negative impact on market stability,including price discovery,volatility and flash crash.In addition,this paper also considers the impact of high-frequency trading on market stability in the trading tax environment,and finds that high-frequency trading in the trading tax environment plays a negative role in the flash crash. |
