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Simulating limit order books (LOBs) has important applications across forecasting and backtesting for financial market data. However, deep generative models struggle in this context due to the high noise and complexity of the data. Previous…

Trading and Market Microstructure · Quantitative Finance 2025-09-08 Alfred Backhouse , Kang Li , Jakob Foerster , Anisoara Calinescu , Stefan Zohren

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

Financial market simulation (FMS) serves as a promising tool for understanding market anomalies and the underlying trading behaviors. To ensure high-fidelity simulations, it is crucial to calibrate the FMS model for generating data closely…

Computational Engineering, Finance, and Science · Computer Science 2025-06-17 Yuanzhe Li , Yue Wu , Muyao Zhong , Shengcai Liu , 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

Modern generative models for limit order books (LOBs) can reproduce realistic market dynamics, but remain fundamentally passive: they either model what typically happens without accounting for hypothetical future market conditions, or they…

Computational Finance · Quantitative Finance 2026-02-04 Zhuohan Wang , Carmine Ventre

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

Training deep learning models that generalize well to live deployment is a challenging problem in the financial markets. The challenge arises because of high dimensionality, limited observations, changing data distributions, and a low…

Statistical Finance · Quantitative Finance 2019-12-20 Brandon Da Silva , Sylvie Shang Shi

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

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

Developing a generative model of realistic order flow in financial markets is a challenging open problem, with numerous applications for market participants. Addressing this, we propose the first end-to-end autoregressive generative model…

Trading and Market Microstructure · Quantitative Finance 2023-09-06 Peer Nagy , Sascha Frey , Silvia Sapora , Kang Li , Anisoara Calinescu , Stefan Zohren , Jakob Foerster

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

The ability to construct a realistic simulator of financial exchanges, including reproducing the dynamics of the limit order book, can give insight into many counterfactual scenarios, such as a flash crash, a margin call, or changes in…

Machine Learning · Computer Science 2023-11-28 Namid R. Stillman , Rory Baggott , Justin Lyon , Jianfei Zhang , Dingqiu Zhu , Tao Chen , Perukrishnen Vytelingum

We propose a highly efficient and accurate methodology for generating synthetic financial market data using a diffusion model approach. The synthetic data produced by our methodology align closely with observed market data in several key…

Computational Finance · Quantitative Finance 2025-02-04 Andrew Lesniewski , Giulio Trigila

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

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

Financial time series often exhibit low signal-to-noise ratio, posing significant challenges for accurate data interpretation and prediction and ultimately decision making. Generative models have gained attention as powerful tools for…

Machine Learning · Computer Science 2024-09-05 Zhuohan Wang , Carmine Ventre

The sharing of microdata, such as fund holdings and derivative instruments, by regulatory institutions presents a unique challenge due to strict data confidentiality and privacy regulations. These challenges often hinder the ability of both…

Machine Learning · Computer Science 2023-09-06 Timur Sattarov , Marco Schreyer , Damian Borth

The recent application of deep learning models to financial trading has heightened the need for high fidelity financial time series data. This synthetic data can be used to supplement historical data to train large trading models. The…

Computational Finance · Quantitative Finance 2025-10-28 Ollie Olby , Rory Baggott , Namid Stillman

Algorithmic trading relies on extracting meaningful signals from diverse financial data sources, including candlestick charts, order statistics on put and canceled orders, traded volume data, limit order books, and news flow. While deep…

Machine Learning · Computer Science 2025-04-22 Kasymkhan Khubiev , Mikhail Semenov

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
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