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We propose an extension to Hawkes processes by treating the levels of self-excitation as a stochastic differential equation. Our new point process allows better approximation in application domains where events and intensities accelerate…

Machine Learning · Computer Science 2016-09-23 Young Lee , Kar Wai Lim , Cheng Soon Ong

Hawkes Processes have undergone increasing popularity as default tools for modeling self- and mutually exciting interactions of discrete events in continuous-time event streams. A Maximum Likelihood Estimation (MLE) unconstrained…

Machine Learning · Computer Science 2021-05-11 Rafael Lima

We present an extended version of the recently proposed "LLOB" model for the dynamics of latent liquidity in financial markets. By allowing for finite cancellation and deposition rates within a continuous reaction-diffusion setup, we…

Trading and Market Microstructure · Quantitative Finance 2017-10-18 Michael Benzaquen , Jean-Philippe Bouchaud

A quasi-centralized limit order book (QCLOB) is a limit order book (LOB) in which financial institutions can only access the trading opportunities offered by counterparties with whom they possess sufficient bilateral credit. We perform an…

Trading and Market Microstructure · Quantitative Finance 2016-10-11 Martin D. Gould , Mason A. Porter , Sam D. Howison

We propose a unified mean-field framework that bridges the dynamics of informal financial markets and formal markets governed by Limit Order Books (LOBs). Both settings are modeled as interacting particle systems on a 1D price lattice, with…

Statistical Mechanics · Physics 2025-12-05 Alvaro Navarro-Rubio , Alejandro Lage-Castellanos

The event sequence of many diverse systems is represented as a sequence of discrete events in a continuous space. Examples of such an event sequence are earthquake aftershock events, financial transactions, e-commerce transactions, social…

Machine Learning · Computer Science 2021-04-23 Jayesh Malaviya

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 present a measurement of price impact in order-driven markets that does not require averages across executions or scenarios. Given the order book data associated with one single execution of a sell metaorder, we measure its contribution…

Trading and Market Microstructure · Quantitative Finance 2022-01-24 Claudio Bellani , Damiano Brigo , Mikko Pakkanen , Leandro Sanchez-Betancourt

Modelling and forecasting the occurrence of extreme events is especially difficult when the event process is nonstationary, with changes in both the rate at which extremes occur and the magnitude of the extremes when they occur. We approach…

Methodology · Statistics 2026-05-06 Gordon J. Ross , Dean Markwick

The aim of this paper is to provide a new method for the detection of either favored or avoided distances between genomic events along DNA sequences. These events are modeled by a Hawkes process. The biological problem is actually complex…

Statistics Theory · Mathematics 2010-11-11 Patricia Reynaud-Bouret , Sophie Schbath

One of the key decisions in execution strategies is the choice between a passive (liquidity providing) or an aggressive (liquidity taking) order to execute a trade in a limit order book (LOB). Essential to this choice is the fill…

Statistical Finance · Quantitative Finance 2023-06-12 Alvaro Arroyo , Alvaro Cartea , Fernando Moreno-Pino , Stefan Zohren

We investigate whether the bid/ask queue imbalance in a limit order book (LOB) provides significant predictive power for the direction of the next mid-price movement. We consider this question both in the context of a simple binary…

Trading and Market Microstructure · Quantitative Finance 2015-12-14 Martin D. Gould , Julius Bonart

This paper deals with the development of a Reduced-Order Model (ROM) to investigate haemodynamics in cardiovascular applications. It employs the use of Proper Orthogonal Decomposition (POD) for the computation of the basis functions and the…

Numerical Analysis · Mathematics 2025-01-24 Pierfrancesco Siena , Pasquale Claudio Africa , Michele Girfoglio , Gianluigi Rozza

Event-driven systems in fields such as neuroscience, social networks, and finance often exhibit dynamics influenced by continuously evolving external covariates. Motivated by these applications, we introduce a new class of multivariate…

Statistics Theory · Mathematics 2025-12-02 Maya Sadeler Perrin , Anna Bonnet , Charlotte Dion-Blanc , Adeline Samson

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

Modeling event dynamics is central to many disciplines. Patterns in observed event arrival times are commonly modeled using point processes. Such event arrival data often exhibits self-exciting, heterogeneous and sporadic trends, which is…

Applications · Statistics 2021-08-16 Jing Wu , Owen G. Ward , James Curley , Tian Zheng

The Hawkes process has garnered attention in recent years for its suitability to describe the behavior of online information cascades. Here, we present a fully tractable approach to analytically describe the distribution of the number of…

Physics and Society · Physics 2020-07-22 Joseph D. O'Brien , Alberto Aleta , Yamir Moreno , James P. Gleeson

We introduce and study an alternative form of the chaotic expansion for counting processes using the Poisson imbedding representation; we name this alternative form \textit{pseudo-chaotic expansion}. As an application, we prove that the…

Probability · Mathematics 2022-09-07 Caroline Hillairet , Anthony Reveillac

Learning the causal-interaction network of multivariate Hawkes processes is a useful task in many applications. Maximum-likelihood estimation is the most common approach to solve the problem in the presence of long observation sequences.…

Machine Learning · Computer Science 2019-11-04 Farnood Salehi , William Trouleau , Matthias Grossglauser , Patrick Thiran

A simple Hawkes model have been developed for the price tick structure dynamics incorporating market microstructure noise and trade clustering. In this paper, the model is extended with random mark to deal with more realistic price tick…

Statistical Finance · Quantitative Finance 2019-07-30 Kyungsub Lee , Byoung Ki Seo