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In this paper, we study various new Hawkes processes. Specifically, we construct general compound Hawkes processes and investigate their properties in limit order books. With regards to these general compound Hawkes processes, we prove a…

Trading and Market Microstructure · Quantitative Finance 2018-12-07 Anatoliy Swishchuk , Aiden Huffman

In this paper we introduce two new Hawkes processes, namely, compound and regime-switching compound Hawkes processes, to model the price processes in limit order books. We prove Law of Large Numbers and Functional Central Limit Theorems…

Mathematical Finance · Quantitative Finance 2017-12-11 Anatoliy Swishchuk , Bruno Remillard , Robert Elliott , Jonathan Chavez-Casillas

In this paper, we focus on a new generalization of multivariate general compound Hawkes process (MGCHP), which we referred to as the multivariate general compound point process (MGCPP). Namely, we applied a multivariate point process to…

Mathematical Finance · Quantitative Finance 2020-08-21 Qi Guo , Bruno Remillard , Anatoliy Swishchuk

High frequency financial data is burdened by a level of randomness that is unavoidable and obfuscates the task of modelling. This idea is reflected in the intraday evolution of limit orders book data for many financial assets and suggests…

Trading and Market Microstructure · Quantitative Finance 2021-10-15 Myles Sjogren , Timothy DeLise

We propose a class of stochastic models for a dynamics of limit order book with different type of liquidities. Within this class of models we study the one where a spread decreases uniformly, belonging to the class of processes known as a…

Trading and Market Microstructure · Quantitative Finance 2021-01-07 Helder Rojas , Artem Logachov , Anatoly Yambartsev

Hawkes Process has been used to model Limit Order Book (LOB) dynamics in several ways in the literature however the focus has been limited to capturing the inter-event times while the order size is usually assumed to be constant. We propose…

Trading and Market Microstructure · Quantitative Finance 2024-08-15 Konark Jain , Nick Firoozye , Jonathan Kochems , Philip Treleaven

In this paper, we consider pricing of European options and spread options for Hawkes-based model for the limit order book. We introduce multivariate Hawkes process and the multivariable general compound Hawkes process. Exponential…

Mathematical Finance · Quantitative Finance 2022-09-19 Qi Guo , Anatoliy Swishchuk , Bruno Rémillard

This study explores the application of Hawkes processes to model high-frequency data in the context of limit order books. Two distinct Hawkes-based models are proposed and analyzed: one utilizing exponential kernels and the other employing…

Mathematical Finance · Quantitative Finance 2025-03-20 Neal Batra

We prove a law of large numbers and functional central limit theorem for a class of multivariate Hawkes processes with time-dependent reproduction rate. We address the difficulties induced by the use of non-convolutive Volterra processes by…

Probability · Mathematics 2025-01-30 Thomas Deschatre , Pierre Gruet , Antoine Lotz

We introduce a Hawkes-like process and study its scaling limit as the system becomes increasingly endogenous. We derive functional limit theorems for intensity and fluctuations. Then, we introduce a high-frequency model for a price of a…

Probability · Mathematics 2018-07-12 Łukasz Treszczotko

We give functional laws of large numbers for a class of marked Hawkes processes and marked compound Hawkes processes with a general mark space. Our results provide some complement to those presented previously in the literature. As an…

Probability · Mathematics 2025-10-29 Tomasz R. Bielecki , Jacek Jakubowski , Mariusz iewȩgłowski , Anatoliy Swishchuk

In this paper we propose an overview of the recent academic literature devoted to the applications of Hawkes processes in finance. Hawkes processes constitute a particular class of multivariate point processes that has become very popular…

Trading and Market Microstructure · Quantitative Finance 2015-05-19 Emmanuel Bacry , Iacopo Mastromatteo , Jean-François Muzy

The propagation of chaos and associated law of large numbers for mean-field interacting age-dependent Hawkes processes (when the number of processes n goes to +$\infty$) being granted by the study performed in (Chevallier, 2015), the aim of…

Probability · Mathematics 2016-11-08 Julien Chevallier

In this paper we derive a scaling limit for an infinite dimensional limit order book model driven by Hawkes random measures. The dynamics of the incoming order flow is allowed to depend on the current market price as well as on a volume…

Mathematical Finance · Quantitative Finance 2018-08-09 Ulrich Horst , Wei Xu

A point process for event arrivals in high frequency trading is presented. The intensity is the product of a Hawkes process and high dimensional functions of covariates derived from the order book. Conditions for stationarity of the process…

Trading and Market Microstructure · Quantitative Finance 2026-05-12 Luca Mucciante , Alessio Sancetta

Because of their tractability and their natural interpretations in term of market quantities, Hawkes processes are nowadays widely used in high-frequency finance. However, in practice, the statistical estimation results seem to show that…

Statistical Finance · Quantitative Finance 2015-03-13 Thibault Jaisson , Mathieu Rosenbaum

In this paper, we propose an event-driven Limit Order Book (LOB) model that captures twelve of the most observed LOB events in exchange-based financial markets. To model these events, we propose using the state-of-the-art Neural Hawkes…

Computational Finance · Quantitative Finance 2025-09-19 Luca Lalor , Anatoliy Swishchuk

In this article, we fill a gap in the literature on Hawkes processes. In particular, we derive a CLT for a non linear compound marked Hawkes process. We also provide an upper bound on the convergence rate using the functional 1-Wasserstein…

Probability · Mathematics 2026-01-27 Benjamin Massat

We prove that the long-run behavior of Hawkes processes is fully determined by the average number and the dispersion of child events. For subcritical processes we provide FLLNs and FCLTs under minimal conditions on the kernel of the process…

Probability · Mathematics 2024-12-31 Ulrich Horst , Wei Xu

A uniform law of large numbers and a central limit theorem are established via a martingale approach for a univariate Hawkes process with immigration given by a renewal process. The results are obtained for renewal processes with absolutely…

Probability · Mathematics 2025-07-01 Luis Iván Hernández Ruíz
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