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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 language models still rely on fixed, pre-defined subword tokenizations. Once a tokenizer is trained, the LM can only operate at this fixed level of granularity, which often leads to brittle and counterintuitive behaviors even in…

Computation and Language · Computer Science 2026-03-05 Chunyuan Deng , Sanket Lokegaonkar , Colin Lockard , Besnik Fetahu , Nasser Zalmout , Xian Li

While financial data presents one of the most challenging and interesting sequence modelling tasks due to high noise, heavy tails, and strategic interactions, progress in this area has been hindered by the lack of consensus on quantitative…

Machine Learning · Computer Science 2025-06-17 Peer Nagy , Sascha Frey , Kang Li , Bidipta Sarkar , Svitlana Vyetrenko , Stefan Zohren , Ani Calinescu , Jakob Foerster

Tokenization is associated with many poorly understood shortcomings in language models (LMs), yet remains an important component for long sequence scaling purposes. This work studies how tokenization impacts model performance by analyzing…

Computation and Language · Computer Science 2025-04-15 Buu Phan , Brandon Amos , Itai Gat , Marton Havasi , Matthew Muckley , Karen Ullrich

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

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

Most widely-used pre-trained language models operate on sequences of tokens corresponding to word or subword units. By comparison, token-free models that operate directly on raw text (bytes or characters) have many benefits: they can…

Computation and Language · Computer Science 2022-03-09 Linting Xue , Aditya Barua , Noah Constant , Rami Al-Rfou , Sharan Narang , Mihir Kale , Adam Roberts , Colin Raffel

Limit order book (LOB) is a dynamic, event-driven system that records real-time market demand and supply for a financial asset in a stream flow. Event stream prediction in LOB refers to forecasting both the timing and the type of events.…

Statistical Finance · Quantitative Finance 2024-12-16 Zetao Zheng , Guoan Li , Deqiang Ouyang , Decui Liang , Jie Shao

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

Modeling financial time series is challenging due to their high volatility and unexpected happenings on the market. Most financial models and algorithms trying to fill the lack of historical financial time series struggle to perform and are…

Machine Learning · Statistics 2021-07-14 Rikli Samuel , Bigler Daniel Nico , Pfenninger Moritz , Osterrieder Joerg

Cryptocurrency price dynamics are driven largely by microstructural supply demand imbalances in the limit order book (LOB), yet the highly noisy nature of LOB data complicates the signal extraction process. Prior research has demonstrated…

Machine Learning · Computer Science 2025-06-11 Haochuan Wang

Tokenization imposes a fixed granularity on the input text, freezing how a language model operates on data and how far in the future it predicts. Byte Pair Encoding (BPE) and similar schemes split text once, build a static vocabulary, and…

Computation and Language · Computer Science 2025-06-18 Mathurin Videau , Badr Youbi Idrissi , Alessandro Leite , Marc Schoenauer , Olivier Teytaud , David Lopez-Paz

Recent advances in generative AI have been largely driven by large language models (LLMs), deep neural networks that operate over discrete units called tokens. To represent text, the vast majority of LLMs use words or word fragments as the…

Financial markets are complex systems characterized by high statistical noise, nonlinearity, volatility, and constant evolution. Thus, modeling them is extremely hard. Here, we address the task of generating realistic and responsive Limit…

Trading and Market Microstructure · Quantitative Finance 2025-11-21 Leonardo Berti , Bardh Prenkaj , Paola Velardi

Recent dynamic tokenisation methods operate directly on bytes and pool their latent representations into patches. This bears similarities to computational models of word segmentation that determine lexical boundaries using spikes in an…

Computation and Language · Computer Science 2025-06-24 Zébulon Goriely , Suchir Salhan , Pietro Lesci , Julius Cheng , Paula Buttery

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

Generating consistent long videos is a complex challenge: while diffusion-based generative models generate visually impressive short clips, extending them to longer durations often leads to memory bottlenecks and long-term inconsistency. In…

Computer Vision and Pattern Recognition · Computer Science 2025-07-22 Wenqi Ouyang , Zeqi Xiao , Danni Yang , Yifan Zhou , Shuai Yang , Lei Yang , Jianlou Si , Xingang Pan

Many problems in science and engineering involve optimizing an expensive black-box function over a high-dimensional space. For such black-box optimization (BBO) problems, we typically assume a small budget for online function evaluations,…

Machine Learning · Computer Science 2023-08-22 Siddarth Krishnamoorthy , Satvik Mehul Mashkaria , Aditya Grover

We present a new perspective of achieving image synthesis by viewing this task as a visual token generation problem. Different from existing paradigms that directly synthesize a full image from a single input (e.g., a latent code), the new…

Computer Vision and Pattern Recognition · Computer Science 2021-12-21 Yanhong Zeng , Huan Yang , Hongyang Chao , Jianbo Wang , Jianlong Fu
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