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This paper poses a few fundamental questions regarding the attributes of the volume profile of a Limit Order Books stochastic structure by taking into consideration aspects of intraday and interday statistical features, the impact of…

Statistical Finance · Quantitative Finance 2015-04-23 Kylie-Anne Richards , Gareth W. Peters , William Dunsmuir

We exploit cutting-edge deep learning methodologies to explore the predictability of high-frequency Limit Order Book mid-price changes for a heterogeneous set of stocks traded on the NASDAQ exchange. In so doing, we release `LOBFrame', an…

Trading and Market Microstructure · Quantitative Finance 2024-06-05 Antonio Briola , Silvia Bartolucci , Tomaso Aste

In this work, we propose to catch the complexity of the membrane potential's dynamic of a motoneuron between its spikes, taking into account the spikes from other neurons around. Our approach relies on two types of data: extracellular…

Statistics Theory · Mathematics 2021-08-03 Anna Bonnet , Charlotte Dion , François Gindraud , Sarah Lemler

We develop a novel deep learning approach for pricing European options in diffusion models, that can efficiently handle high-dimensional problems resulting from Markovian approximations of rough volatility models. The option pricing partial…

Computational Finance · Quantitative Finance 2025-04-04 Antonis Papapantoleon , Jasper Rou

We propose a Neural Hidden Markov Model (HMM) with Adaptive Granularity Attention (AGA) for high-frequency order flow modeling. The model addresses the challenge of capturing multi-scale temporal dynamics in financial markets, where…

Statistical Finance · Quantitative Finance 2026-03-24 Tianzuo Hu

Recognizing the importance of jump risk in option pricing, we propose a neural jump stochastic differential equation model in this paper, which integrates neural networks as parameter estimators in the conventional jump diffusion model. To…

General Finance · Quantitative Finance 2025-06-06 Duosi Zheng , Hanzhong Guo , Yanchu Liu , Wei Huang

We present a framework for hedging a portfolio of derivatives in the presence of market frictions such as transaction costs, market impact, liquidity constraints or risk limits using modern deep reinforcement machine learning methods. We…

Computational Finance · Quantitative Finance 2018-02-12 Hans Bühler , Lukas Gonon , Josef Teichmann , Ben Wood

Social learning strategies enable agents to infer the underlying true state of nature in a distributed manner by receiving private environmental signals and exchanging beliefs with their neighbors. Previous studies have extensively focused…

Multiagent Systems · Computer Science 2025-03-18 Dongyan Sui , Haitian Zheng , Siyang Leng , Stefan Vlaski

Part I of this work [2] developed the exact diffusion algorithm to remove the bias that is characteristic of distributed solutions for deterministic optimization problems. The algorithm was shown to be applicable to a larger set of…

Optimization and Control · Mathematics 2017-12-27 Kun Yuan , Bicheng Ying , Xiaochuan Zhao , Ali H. Sayed

We introduce a novel large-scale deep learning model for Limit Order Book mid-price changes forecasting, and we name it `HLOB'. This architecture (i) exploits the information encoded by an Information Filtering Network, namely the…

Trading and Market Microstructure · Quantitative Finance 2024-06-05 Antonio Briola , Silvia Bartolucci , Tomaso Aste

This paper investigates real-time detection of spoofing activity in limit order books, focusing on cryptocurrency centralized exchanges. We first introduce novel order flow variables based on multi-scale Hawkes processes that account both…

Trading and Market Microstructure · Quantitative Finance 2025-04-23 Timothée Fabre , Damien Challet

We develop a new framework to detect wash trading in crypto assets through real-time liquidity fluctuation. We propose that short-term price jumps in crypto assets results from wash trading-induced liquidity fluctuation, and construct two…

Risk Management · Quantitative Finance 2025-04-01 Qi Deng , Zhong-Guo Zhou

High-order Graph Neural Networks (HO-GNNs) have been developed to infer consistent latent spaces in the heterophilic regime, where the label distribution is not correlated with the graph structure. However, most of the existing HO-GNNs are…

Machine Learning · Computer Science 2023-06-30 Ahmed Begga , Francisco Escolano , Miguel Angel Lozano , Edwin R. Hancock

In this work, we consider the hedging error due to discrete trading in models with jumps. Extending an approach developed by Fukasawa [In Stochastic Analysis with Financial Applications (2011) 331-346 Birkh\"{a}user/Springer Basel AG] for…

Risk Management · Quantitative Finance 2014-04-29 Mathieu Rosenbaum , Peter Tankov

In this paper we propose and analyze a method based on the Riccati transformation for solving the evolutionary Hamilton-Jacobi-Bellman equation arising from the stochastic dynamic optimal allocation problem. We show how the fully nonlinear…

Portfolio Management · Quantitative Finance 2013-07-25 Sona Kilianova , Daniel Sevcovic

Motivated by the design of fast reinforcement learning algorithms, we study the diffusive limit of a class of pure jump ergodic stochastic control problems. We show that, whenever the intensity of jumps is large enough, the approximation…

Optimization and Control · Mathematics 2022-10-03 Marc Abeille , Bruno Bouchard , Lorenzo Croissant

We investigate a market with a normal-speed informed trader (IT) who may employ mixed strategy and multiple anticipatory high-frequency traders (HFTs) who are under different inventory pressures, in a three-period Kyle's model. The pure-…

Trading and Market Microstructure · Quantitative Finance 2024-03-14 Ziyi Xu , Xue Cheng

An approximation method for construction of optimal strategies in the bid \& ask limit order book in the high-frequency trading (HFT) is studied. The basis is the article by M. Avellaneda \& S. Stoikov 2008, in which certain seemingly…

Trading and Market Microstructure · Quantitative Finance 2025-10-21 M. I. Balakaeva , A. Yu. Veretennikov

Affine jump-diffusions constitute a large class of continuous-time stochastic models that are particularly popular in finance and economics due to their analytical tractability. Methods for parameter estimation for such processes require…

Mathematical Finance · Quantitative Finance 2018-11-02 Xiaowei Zhang , Peter W. Glynn

Diffusion models are increasingly used as powerful conditional generators, yet real deployments often involve multiple target distributions arising from different tasks, e.g., diverse prompt domains in text-to-image generation, or multiple…

Machine Learning · Computer Science 2026-05-26 Ziheng Cheng , Yixiao Huang , Hanlin Zhu , Haoran Geng , Somayeh Sojoudi , Jitendra Malik , Pieter Abbeel , Xin Guo