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The Limit Order Book (LOB), the mostly fundamental data of the financial market, provides a fine-grained view of market dynamics while poses significant challenges in dealing with the esteemed deep models due to its strong autocorrelation,…

Computational Engineering, Finance, and Science · Computer Science 2025-05-06 Muyao Zhong , Yushi Lin , Peng Yang

Limit Order Books (LOBs) serve as a mechanism for buyers and sellers to interact with each other in the financial markets. Modelling and simulating LOBs is quite often necessary for calibrating and fine-tuning the automated trading…

Trading and Market Microstructure · Quantitative Finance 2024-03-04 Konark Jain , Nick Firoozye , Jonathan Kochems , Philip Treleaven

In this paper we consider classes of models that have been recently developed for quantitative finance that involve modelling a highly complex multivariate, multi-attribute stochastic process known as the Limit Order Book (LOB). The LOB is…

Computational Finance · Quantitative Finance 2015-04-23 Gareth W. Peters , Efstathios Panayi , Francois Septier

Modern financial exchanges use an electronic limit order book (LOB) to store bid and ask orders for a specific financial asset. As the most fine-grained information depicting the demand and supply of an asset, LOB data is essential in…

Trading and Market Microstructure · Quantitative Finance 2023-03-02 Zijian Shi , John Cartlidge

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

Market making (MM) is an important research topic in quantitative finance, the agent needs to continuously optimize ask and bid quotes to provide liquidity and make profits. The limit order book (LOB) contains information on all active…

Computational Finance · Quantitative Finance 2023-05-26 Hong Guo , Jianwu Lin , Fanlin Huang

Market by order (MBO) data - a detailed feed of individual trade instructions for a given stock on an exchange - is arguably one of the most granular sources of microstructure information. While limit order books (LOBs) are implicitly…

Trading and Market Microstructure · Quantitative Finance 2021-07-28 Zihao Zhang , Bryan Lim , Stefan Zohren

We develop a large-scale deep learning model to predict price movements from limit order book (LOB) data of cash equities. The architecture utilises convolutional filters to capture the spatial structure of the limit order books as well as…

Computational Finance · Quantitative Finance 2020-01-24 Zihao Zhang , Stefan Zohren , Stephen Roberts

Multi-agent market simulators usually require careful calibration to emulate real markets, which includes the number and the type of agents. Poorly calibrated simulators can lead to misleading conclusions, potentially causing severe loss…

Trading and Market Microstructure · Quantitative Finance 2022-10-19 Andrea Coletta , Aymeric Moulin , Svitlana Vyetrenko , Tucker Balch

We report successful results from using deep learning neural networks (DLNNs) to learn, purely by observation, the behavior of profitable traders in an electronic market closely modelled on the limit-order-book (LOB) market mechanisms that…

Computational Engineering, Finance, and Science · Computer Science 2018-11-08 Arthur le Calvez , Dave Cliff

Machine learning (especially reinforcement learning) methods for trading are increasingly reliant on simulation for agent training and testing. Furthermore, simulation is important for validation of hand-coded trading strategies and for…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 Svitlana Vyetrenko , David Byrd , Nick Petosa , Mahmoud Mahfouz , Danial Dervovic , Manuela Veloso , Tucker Hybinette Balch

Financial exchanges across the world use limit order books (LOBs) to process orders and match trades. For research purposes it is important to have large scale efficient simulators of LOB dynamics. LOB simulators have previously been…

Trading and Market Microstructure · Quantitative Finance 2023-08-28 Sascha Frey , Kang Li , Peer Nagy , Silvia Sapora , Chris Lu , Stefan Zohren , Jakob Foerster , Anisoara Calinescu

With the proliferation of algorithmic high-frequency trading in financial markets, the Limit Order Book has generated increased research interest. Research is still at an early stage and there is much we do not understand about the dynamics…

Trading and Market Microstructure · Quantitative Finance 2019-02-05 Faisal I Qureshi

In electronic trading markets, limit order books (LOBs) provide information about pending buy/sell orders at various price levels for a given security. Recently, there has been a growing interest in using LOB data for resolving downstream…

Statistical Finance · Quantitative Finance 2022-11-22 Defu Cao , Yousef El-Laham , Loc Trinh , Svitlana Vyetrenko , Yan Liu

We introduce a practical, interactive simulator of the limit order book for large-tick assets, designed to produce realistic execution, costs, and P&L. The book state is projected onto a tractable representation based on spread and volume…

Trading and Market Microstructure · Quantitative Finance 2026-03-26 Patrick Noble , Mathieu Rosenbaum , Saad Souilmi

The limit order book (LOB) depicts the fine-grained demand and supply relationship for financial assets and is widely used in market microstructure studies. Nevertheless, the availability and high cost of LOB data restrict its wider…

Trading and Market Microstructure · Quantitative Finance 2021-07-02 Zijian Shi , John Cartlidge

Trade-based manipulation (TBM) undermines the fairness and stability of financial markets drastically. Spoofing, one of the most covert and deceptive TBM strategies, exhibits complex anomaly patterns across multilevel prices, while often…

Computational Finance · Quantitative Finance 2025-10-13 Yushi Lin , Peng Yang

We develop a new market-making model, from the ground up, which is tailored towards high-frequency trading under a limit order book (LOB), based on the well-known classification of order types in market microstructure. Our flexible…

Trading and Market Microstructure · Quantitative Finance 2020-01-31 Baron Law , Frederi Viens

Limit order books (LOBs) match buyers and sellers in more than half of the world's financial markets. This survey highlights the insights that have emerged from the wealth of empirical and theoretical studies of LOBs. We examine the…

Trading and Market Microstructure · Quantitative Finance 2015-03-17 Martin D. Gould , Mason A. Porter , Stacy Williams , Mark McDonald , Daniel J. Fenn , Sam D. Howison

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
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