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Exploring complex adaptive financial trading environments through multi-agent based simulation methods presents an innovative approach within the realm of quantitative finance. Despite the dominance of multi-agent reinforcement learning…

Computational Finance · Quantitative Finance 2024-05-07 Alicia Vidler , Toby Walsh

Data marketplaces, which mediate the purchase and exchange of data from third parties, have attracted growing attention for reducing the cost and effort of data collection while enabling the trading of diverse datasets. However, a…

Multiagent Systems · Computer Science 2025-11-18 Jun Sashihara , Yukihisa Fujita , Kota Nakamura , Masahiro Kuwahara , Teruaki Hayashi

Quantitative finance has had a long tradition of a bottom-up approach to complex systems inference via multi-agent systems (MAS). These statistical tools are based on modelling agents trading via a centralised order book, in order to…

Trading and Market Microstructure · Quantitative Finance 2019-10-18 J. Lussange , I. Lazarevich , S. Bourgeois-Gironde , S. Palminteri , B. Gutkin

Continuous double auctions such as the limit order book employed by exchanges are widely used in practice to match buyers and sellers of a variety of financial instruments. In this work, we develop an agent-based model for trading in a…

Computational Finance · Quantitative Finance 2021-11-01 Mahmoud Mahfouz , Tucker Balch , Manuela Veloso , Danilo Mandic

In complex financial systems, the sector structure and volatility clustering are respectively important features of the spatial and temporal correlations. However, the microscopic generation mechanism of the sector structure is not yet…

General Finance · Quantitative Finance 2015-04-09 Jun-Jie Chen , Lei Tan , Bo Zheng

In this paper we present and evaluate a general framework for the design of truthful auctions for matching agents in a dynamic, two-sided market. A single commodity, such as a resource or a task, is bought and sold by multiple buyers and…

Computer Science and Game Theory · Computer Science 2011-11-02 J. L. Bredin , Q. Duong , D. C. Parkes

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

In the present work we introduce a novel multi-agent model with the aim to reproduce the dynamics of a double auction market at microscopic time scale through a faithful simulation of the matching mechanics in the limit order book. The…

Trading and Market Microstructure · Quantitative Finance 2015-05-18 Marco Bartolozzi

This paper presents a new financial market simulator that may be used as a tool in both industry and academia for research in market microstructure. It allows multiple automated traders and/or researchers to simultaneously connect to an…

Trading and Market Microstructure · Quantitative Finance 2020-08-31 Thiago W. Alves , Ionut Florescu , George Calhoun , Dragos Bozdog

Recent advances in large language models (LLMs) have opened new avenues for applying multi-agent systems in very large-scale simulations. However, there remain several challenges when conducting multi-agent simulations with existing…

Multiagent Systems · Computer Science 2024-10-29 Xuchen Pan , Dawei Gao , Yuexiang Xie , Yushuo Chen , Zhewei Wei , Yaliang Li , Bolin Ding , Ji-Rong Wen , Jingren Zhou

This paper presents a realistic simulated stock market where large language models (LLMs) act as heterogeneous competing trading agents. The open-source framework incorporates a persistent order book with market and limit orders, partial…

Computational Finance · Quantitative Finance 2025-04-16 Alejandro Lopez-Lira

In recent years, individual-based/agent-based modeling has been applied to study a wide range of applications, ranging from engineering problems to phenomena in sociology, economics and biology. Simulating such agent-based models over…

Numerical Analysis · Mathematics 2014-04-30 Ping Liu , Giovanni Samaey , C. William Gear , Ioannis G. Kevrekidis

In this paper we develop a new form of agent-based model for limit order books based on heterogeneous trading agents, whose motivations are liquidity driven. These agents are abstractions of real market participants, expressed in a…

Statistical Finance · Quantitative Finance 2015-01-20 Efstathios Panayi , Gareth Peters

Although Large Language Model (LLM)-based agents are increasingly used in financial trading, it remains unclear whether they can reason and adapt in live markets, as most studies test models instead of agents, cover limited periods and…

Agent-based modeling plays an essential role in gaining insights into biology, sociology, economics, and other fields. However, many existing agent-based simulation platforms are not suitable for large-scale studies due to the low…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-04-25 Lukas Breitwieser , Ahmad Hesam , Fons Rademakers , Juan Gómez Luna , Onur Mutlu

While simulations have been utilized in diverse domains, such as urban growth modeling, market dynamics modeling, etc; some of these applications may require validations based upon some real-world observations modeled in the simulation, as…

Multiagent Systems · Computer Science 2019-08-12 Dongjun Kim , Tae-Sub Yun , Il-Chul Moon

We present our approach to the problem of how an agent, within an economic Multi-Agent System, can determine when it should behave strategically (i.e. learn and use models of other agents), and when it should act as a simple price-taker. We…

Multiagent Systems · Computer Science 2007-05-23 Jose M. Vidal , Edmund H. Durfee

This paper uses the development of multi-agent market models to present a unified approach to the joint questions of how financial market movements may be simulated, predicted, and hedged against. We examine the effect of different market…

Condensed Matter · Physics 2009-10-31 P. Jefferies , M. L. Hart , P. M. Hui , N. F. Johnson

We introduce a framework to study the effective objectives at different time scales of financial market microstructure. The financial market can be regarded as a complex adaptive system, where purposeful agents collectively and…

Trading and Market Microstructure · Quantitative Finance 2017-12-05 Dieter Hendricks , Adam Cobb , Richard Everett , Jonathan Downing , Stephen J. Roberts

Due to decelerating gains in single-core CPU performance, computationally expensive simulations are increasingly executed on highly parallel hardware platforms. Agent-based simulations, where simulated entities act with a certain degree of…

Multiagent Systems · Computer Science 2018-07-04 Jiajian Xiao , Philipp Andelfinger , David Eckhoff , Wentong Cai , Alois Knoll