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LCfP / Agent-Based-Stock-Market-Model

This repository contains the agent-based stock market model
MIT License
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Market matching mechanism #9

Closed joerischasfoort closed 7 years ago

joerischasfoort commented 7 years ago

I think I found a bug in the market matching mechanism. It returned the wrong agent set. And it appended to a list of matched agents which I believe is no longer necessary. I added a TODO there. Mark could you have a look to check that I did not make any mistakes?

joerischasfoort commented 7 years ago

There are basically two market matching mechanisms in financial economics: Over the counter (OTC) and Auctions.

OTC

Refers to trading in a decentralised network of traders. This type of market matching is prevalent in many financial markets such as small scale stock markets (penny stocks), bonds and derivatives.

Auction

Refers to trading via a centralised auctioneer. Today, this function is often performed by an exchange. An exchange uses an order book to collect bid and ask order from traders. These are then matched via a matching algorithm. In current markets, two types of matching algorithms stand out: the call auction and continuous double auction.

Our current model reflects OTC trading. It might be interesting to explore auction mechanisms as an extension to our model.