There is actually a kind of first generation SFI market which was ready and operating in the late 1980’s and early 1990’s. This was eventually published in 1994 in Palmer, Arthur, Holland, LeBaron & Tayler (1994). This was a simpler, but less economically oriented market of trading dynamics than the eventual SFI market. Rules simply mapped states of the world into buy or sell decisions. The market operated in the following fashion. A price was announced by a market maker to all the traders. Agents found a matching rule for the current market conditions, and came to the market with an order to buy or.
