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# Microstructure Computational Model and Spoofing Strategies
- URL: https://fsc.stevens.edu/microstructure-computational-model-and-spoofing-strategies/
- Published: 2020-06-19T19:50:10.000Z
- Updated: 2026-05-16T22:41:01.000Z
- Author: Shenze Yu
- Tags: 2019 Fall, FE 800 Projects, Research, #Import 2024-05-30 10:26, #Import 2025-11-08 22:14

### **Researchers**

Zhuohao Hu, M.S. in Financial Engineering, Graduated December 2019  
Zikun Chen, M.S. in Financial Engineering, Graduated December 2019

**Advisor:**  
Dr. Steve Yang

### **Abstract**

Market manipulation distorts the fair pricing of securities by creating artificial prices, and accordingly it significantly lowers individuals’ market participation. In this project, a java-based software called Anylogic has been introduced to simulate an agent-based model of the stock market. It helps market regulators to summarize patterns of market manipulation and provides guidance for future market manipulation investigation.

**Keywords**: market microstructure, agent-based model, spoofing strategy

### **Sample Result**

![](https://fsc.stevens.edu/content/images/2020/06/GUI-picture.png)

### **Conclusion**

The results show that spoofing traders profit a lot from the market by sending huge amount of fake orders to manipulate order difference. In the meanwhile, the volatility of the market also increases significantly and indicates a rising in market risk. In conclusion, all spoofing strategies are illegal, and those traders must be banned.