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The paper examines the potential of deep learning to support decisions in financial risk management. We develop a deep learning model for predicting whether individual spread traders secure profits from future trades. This task embodies…

Risk Management · Quantitative Finance 2019-11-19 Yaodong Yang , Alisa Kolesnikova , Stefan Lessmann , Tiejun Ma , Ming-Chien Sung , Johnnie E. V. Johnson

LLMs demonstrate remarkable reasoning capabilities, yet whether they utilize internal world models or rely on sophisticated pattern matching remains open. We study LLMs through the lens of robustness of their code understanding using a…

Software Engineering · Computer Science 2026-04-21 Claudio Spiess , Prem Devanbu , Earl T. Barr

Autonomous systems that rely on Machine Learning (ML) utilize online fault tolerance mechanisms, such as runtime monitors, to detect ML prediction errors and maintain safety during operation. However, the lack of human-interpretable…

Machine Learning · Computer Science 2025-05-21 Aniket Salvi , Gereon Weiss , Mario Trapp

Interpretation of a machine learning induced models is critical for feature engineering, debugging, and, arguably, compliance. Yet, best of breed machine learning models tend to be very complex. This paper presents a method for model…

Machine Learning · Computer Science 2018-02-27 Noa Avigdor-Elgrabli , Alex Libov , Michael Viderman , Ran Wolff

To learn about real world phenomena, scientists have traditionally used models with clearly interpretable elements. However, modern machine learning (ML) models, while powerful predictors, lack this direct elementwise interpretability (e.g.…

Machine Learning · Statistics 2024-07-16 Timo Freiesleben , Gunnar König , Christoph Molnar , Alvaro Tejero-Cantero

Deep learning approaches have recently been extensively explored for the prognostics of industrial assets. However, they still suffer from a lack of interpretability, which hinders their adoption in safety-critical applications. To improve…

Machine Learning · Computer Science 2024-05-29 Florent Forest , Katharina Rombach , Olga Fink

Machine Learning (ML) models are widely used in high-stakes domains such as healthcare, where the reliability of predictions is critical. However, these models often fail to account for uncertainty, providing predictions even with low…

Organizations developing machine learning-based (ML) technologies face the complex challenge of achieving high predictive performance while respecting the law. This intersection between ML and the law creates new complexities. As ML model…

Computers and Society · Computer Science 2025-04-25 Mathias Hanson , Gregory Lewkowicz , Sam Verboven

In this paper, we propose a method to perform empirical analysis of the loss landscape of machine learning (ML) models. The method is applied to two ML models for scientific sensing, which necessitates quantization to be deployed and are…

Machine Learning · Computer Science 2025-02-17 Tommaso Baldi , Javier Campos , Olivia Weng , Caleb Geniesse , Nhan Tran , Ryan Kastner , Alessandro Biondi

Reinforcement learning (RL) is an innovative approach to financial decision making, offering specialized solutions to complex investment problems where traditional methods fail. This review analyzes 167 articles from 2017--2025, focusing on…

Computational Finance · Quantitative Finance 2025-12-12 Mohammad Rezoanul Hoque , Md Meftahul Ferdaus , M. Kabir Hassan

Interpretability, trustworthiness, and usability are key considerations in high-stake security applications, especially when utilizing deep learning models. While these models are known for their high accuracy, they behave as black boxes in…

When quantitative models are used to support decision-making on complex and important topics, understanding a model's ``reasoning'' can increase trust in its predictions, expose hidden biases, or reduce vulnerability to adversarial attacks.…

Machine Learning · Computer Science 2019-07-09 Dimitris Bertsimas , Arthur Delarue , Patrick Jaillet , Sebastien Martin

The local and global interpretability of various ML models has been studied extensively in recent years. However, despite significant progress in the field, many known results remain informal or lack sufficient mathematical rigor. We…

Machine Learning · Computer Science 2024-06-10 Shahaf Bassan , Guy Amir , Guy Katz

Model-based Deep Reinforcement Learning (RL) assumes the availability of a model of an environment's underlying transition dynamics. This model can be used to predict future effects of an agent's possible actions. When no such model is…

Machine Learning · Computer Science 2021-12-15 Andreas Sedlmeier , Michael Kölle , Robert Müller , Leo Baudrexel , Claudia Linnhoff-Popien

Although existing machine reading comprehension models are making rapid progress on many datasets, they are far from robust. In this paper, we propose an understanding-oriented machine reading comprehension model to address three kinds of…

Computation and Language · Computer Science 2022-07-04 Feiliang Ren , Yongkang Liu , Bochao Li , Shilei Liu , Bingchao Wang , Jiaqi Wang , Chunchao Liu , Qi Ma

Financial markets are of much interest to researchers due to their dynamic and stochastic nature. With their relations to world populations, global economies and asset valuations, understanding, identifying and forecasting trends and…

Statistical Finance · Quantitative Finance 2021-08-13 Peter Akioyamen , Yi Zhou Tang , Hussien Hussien

The balancing market in the energy sector plays a critical role in physically and financially balancing the supply and demand. Modeling dynamics in the balancing market can provide valuable insights and prognosis for power grid stability…

Statistical Finance · Quantitative Finance 2026-02-03 Oskar Våle , Shiliang Zhang , Sabita Maharjan , Gro Klæboe

The inherent non-stationarity of financial markets and the complexity of multi-modal information pose significant challenges to existing quantitative trading models. Traditional methods relying on fixed structures and unimodal data struggle…

Trading and Market Microstructure · Quantitative Finance 2025-09-11 Yang Chen , Yueheng Jiang , Zhaozhao Ma , Yuchen Cao , Jacky Keung , Kun Kuang , Leilei Gan , Yiquan Wu , Fei Wu

Reinforcement learning (RL) is gaining attention by more and more researchers in quantitative finance as the agent-environment interaction framework is aligned with decision making process in many business problems. Most of the current…

Mathematical Finance · Quantitative Finance 2022-05-31 Huifang Huang , Ting Gao , Yi Gui , Jin Guo , Peng Zhang

Multi-Modal Learning (MML) integrates information from diverse modalities to improve predictive accuracy. While existing optimization strategies have made significant strides by mitigating gradient direction conflicts, we revisit MML from a…

Machine Learning · Computer Science 2026-02-09 Peizheng Guo , Jingyao Wang , Wenwen Qiang , Jiahuan Zhou , Changwen Zheng , Gang Hua