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We introduce a model for limit order book of a certain security with two main features: First, both the limit orders and market orders for the given asset are allowed to appear and interact with each other. Second, the high frequency…

Pricing of Securities · Quantitative Finance 2024-12-24 Yun Chen-Shue , Yukun Li , Jiongmin Yong

We introduce the Hyperedge-triggered Hawkes (HTH) process for inferring higher-order interaction structure in multi-cellular systems from asynchronous event-time data. Beyond standard pairwise excitation, the HTH intensity includes a term…

Methodology · Statistics 2026-05-27 Zihan Xu

In a discrete-time setting, we consider an arrival process $\left\{\xi_n \, \middle| \, n = 1, 2, \ldots \right\}$, which models the occurrence of events, and a corresponding point process $\left\{H_n \, \middle| \, n = 1, 2, \ldots…

Probability · Mathematics 2026-03-10 Utpal Jyoti Deba Sarma , Dharmaraja Selvamuthu

In this paper we revisit the Markovian queueing system with a single server, infinite capacity queue and the special queue skipping policy. Customers arrive in batches, but are served one by one according to any conservative discipline. The…

Probability · Mathematics 2020-12-01 A. Zeifman , R. Razumchik , Y. Satin , I. Kovalev

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

Many events occur in the world. Some event types are stochastically excited or inhibited---in the sense of having their probabilities elevated or decreased---by patterns in the sequence of previous events. Discovering such patterns can help…

Machine Learning · Computer Science 2017-11-22 Hongyuan Mei , Jason Eisner

This paper investigates optimal execution strategies in intraday energy markets through a mutually exciting Hawkes process model. Calibrated to data from the German intraday electricity market, the model effectively captures key empirical…

Trading and Market Microstructure · Quantitative Finance 2025-11-27 Konstantinos Chatziandreou , Sven Karbach

The modeling of the limit order book is directly related to the assumptions on the behavior of real market participants. This paper is twofold. We first present empirical findings that lay the ground for two improvements to these models.The…

Trading and Market Microstructure · Quantitative Finance 2020-09-08 Mouhamad Drame

We conduct modeling of the price dynamics following order flow imbalance in market microstructure and apply the model to the analysis of Chinese CSI 300 Index Futures. There are three findings. The first is that the order flow imbalance is…

Mathematical Finance · Quantitative Finance 2025-05-26 Chen Hu , Kouxiao Zhang

The Hawkes process (HP) has been widely applied to modeling self-exciting events including neuron spikes, earthquakes and tweets. To avoid designing parametric triggering kernel and to be able to quantify the prediction confidence, the…

Machine Learning · Computer Science 2021-02-05 Rui Zhang , Christian Walder , Marian-Andrei Rizoiu

We propose a microstructural modeling framework for studying optimal market making policies in a FIFO (first in first out) limit order book (LOB). In this context, the limit orders, market orders, and cancel orders arrivals in the LOB are…

Trading and Market Microstructure · Quantitative Finance 2020-02-21 Frédéric Abergel , Côme Huré , Huyên Pham

We propose a novel framework for modeling multiple multivariate point processes, each with heterogeneous event types that share an underlying space and obey the same generative mechanism. Focusing on Hawkes processes and their variants that…

Machine Learning · Computer Science 2021-02-05 Hongteng Xu , Dixin Luo , Hongyuan Zha

We present a Markovian market model driven by a hidden Brownian efficient price. In particular, we extend the queue-reactive model, making its dynamics dependent on the efficient price. Our study focuses on two sub-models: a signal-driven…

Trading and Market Microstructure · Quantitative Finance 2025-06-16 Emmanouil Sfendourakis

In this paper, we address the problem of fitting multivariate Hawkes processes to potentially large-scale data in a setting where series of events are not only mutually-exciting but can also exhibit inhibitive patterns. We focus on…

Probability · Mathematics 2014-05-19 Remi Lemonnier , Nicolas Vayatis

In this paper, we present a nonparametric estimation procedure for the multivariate Hawkes point process. The timeline is cut into bins and -- for each component process -- the number of points in each bin is counted. The distribution of…

Probability · Mathematics 2022-08-18 Matthias Kirchner

Event history data from sports competitions have recently drawn increasing attention in sports analytics to generate data-driven strategies. Such data often exhibit self-excitation in the event occurrence and dependence within event…

Methodology · Statistics 2026-01-14 K. Ken Peng , X. Joan Hu , Tim B. Swartz

Classic estimation methods for Hawkes processes rely on the assumption that observed event times are indeed a realisation of a Hawkes process, without considering any potential perturbation of the model. However, in practice, observations…

Methodology · Statistics 2025-08-21 Anna Bonnet , Felix Cheysson , Miguel Martinez Herrera , Maxime Sangnier

Detecting rare events, those defined to give rise to high impact but have a low probability of occurring, is a challenge in a number of domains including meteorological, environmental, financial and economic. The use of machine learning to…

Applications · Statistics 2022-09-13 Santhosh Narayanan , Carsten Maple , Mark Hooper

We propose a simulation method for multidimensional Hawkes processes based on superposition theory of point processes. This formulation allows us to design efficient simulations for Hawkes processes with differing exponentially decaying…

Machine Learning · Statistics 2018-03-14 Kar Wai Lim , Young Lee , Leif Hanlen , Hongbiao Zhao

A univariate Hawkes process is a simple point process that is self-exciting and has clustering effect. The intensity of this point process is given by the sum of a baseline intensity and another term that depends on the entire past history…

Probability · Mathematics 2018-10-04 Xuefeng Gao , Lingjiong Zhu
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