Speculative trades and financial regulations: simulations based ongenetic programming
Shu-Heng Chen; Chia-Hsuan Yeh
Computational Intelligence for Financial Engineering (CIFEr), 1997., Proceedings of the IEEE/IAFE 1997
Volume , Issue , 23-25 Mar 1997 Page(s):123 - 129
Digital Object Identifier   10.1109/CIFER.1997.618924
Summary:By exploring a two-dimensional parameter space, the paper pinpoints the area where speculative trades can contribute to the reduction of price volatility and are hence imperative for market efficiency. This area is delimited by a rather restrictive financial regulations imposed on an inherently unstable economy. Specifically, depending on the associated financial regulations, the authors' GP-based simulations of cobweb markets show that speculative trades may reduce price volatility by 20% to 50% in an inherently unstable economy; on the other hand they may also increase price volatility by 300% to 3000%. The paper generalizes the earlier finding by Chen and Yeh (1997), which basically shows that in an inherently stable economy, speculative trades can only be destabilizing

» View citation and abstract

Log in by entering your IEEE Web Account Username and Password.

IEEE Communications Society members: If you subscribe to the IEEE Electronic Periodicals Package or IEEE Electronic Periodicals Package Plus, you must access your subscription at www.comsoc.org.

Check with your librarian, information professional, or system manager to determine if you need to log in. Please complete the online Technical Support Form if you need assistance.

Select the Purchase History link to access the document. You will have 5 Days after purchase to access the Full Text PDF. Please complete the online Technical Support Form if you need assistance.

• Search and access Abstract records free of charge
• Register for table of contents alerts
• Purchase Full Text PDF documents

» Learn more about subscription options or how to become an IEEE Member.