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We present a white-box, risk-sensitive framework for jointly hedging SPX and VIX exposures under transaction costs and regime shifts. The approach couples an arbitrage-free market teacher with a control layer that enforces safety as…

Risk Management · Quantitative Finance 2025-10-21 Jian'an Zhang

We present a numerically efficient approach for learning a risk-neutral measure for paths of simulated spot and option prices up to a finite horizon under convex transaction costs and convex trading constraints. This approach can then be…

Computational Finance · Quantitative Finance 2021-07-15 Hans Buehler , Phillip Murray , Mikko S. Pakkanen , Ben Wood

We study the reconstruction of implied volatility surfaces from sparse and noisy option quotes using deep learning models under no-arbitrage constraints. We compare multiple neural architectures, including multilayer perceptrons,…

Computational Finance · Quantitative Finance 2026-05-26 Pablo Rodriguez Manzi

Data-driven modeling techniques have been explored in the spatial-temporal modeling of complex dynamical systems for many engineering applications. However, a systematic approach is still lacking to leverage the information from different…

Machine Learning · Computer Science 2024-10-15 Chuanqi Chen , Jin-Long Wu

We explore the abilities of two machine learning approaches for no-arbitrage interpolation of European vanilla option prices, which jointly yield the corresponding local volatility surface: a finite dimensional Gaussian process (GP)…

Mathematical Finance · Quantitative Finance 2022-12-21 Marc Chataigner , Areski Cousin , Stéphane Crépey , Matthew Dixon , Djibril Gueye

Modelling joint dynamics of liquid vanilla options is crucial for arbitrage-free pricing of illiquid derivatives and managing risks of option trade books. This paper develops a nonparametric model for the European options book respecting…

Computational Finance · Quantitative Finance 2021-08-24 Samuel N. Cohen , Christoph Reisinger , Sheng Wang

We present a feasibility-seeking approach to neural network training. This mathematical optimization framework is distinct from conventional gradient-based loss minimization and uses projection operators and iterative projection algorithms.…

Machine Learning · Computer Science 2026-05-18 Andreas Bergmeister , Manish Krishan Lal , Stefanie Jegelka , Suvrit Sra

Motivated by classical work on the numerical integration of ordinary differential equations we present a ResNet-styled neural network architecture that encodes non-expansive (1-Lipschitz) operators, as long as the spectral norms of the…

Learning operators between infinitely dimensional spaces is an important learning task arising in wide applications in machine learning, imaging science, mathematical modeling and simulations, etc. This paper studies the nonparametric…

Machine Learning · Statistics 2022-01-04 Hao Liu , Haizhao Yang , Minshuo Chen , Tuo Zhao , Wenjing Liao

In this paper we demonstrate both theoretically as well as numerically that neural networks can detect model-free static arbitrage opportunities whenever the market admits some. Due to the use of neural networks, our method can be applied…

Computational Finance · Quantitative Finance 2024-08-14 Ariel Neufeld , Julian Sester

Mesh-free numerical methods provide flexible discretisations for complex geometries; however, classical meshless discrete differential operators typically trade low computational cost for limited accuracy or high accuracy for substantial…

Machine Learning · Computer Science 2026-03-27 Lucas Gerken Starepravo , Georgios Fourtakas , Steven Lind , Ajay B. Harish , Tianning Tang , Jack R. C. King

We propose RHYME-XT, an operator-learning framework for surrogate modeling of spatiotemporal control systems governed by input-affine nonlinear partial integro-differential equations (PIDEs) with localized rhythmic behavior. RHYME-XT uses a…

Machine Learning · Computer Science 2026-03-19 Marijn Ruiter , Miguel Aguiar , Jake Rap , Karl H. Johansson , Amritam Das

We propose a deep neural-operator framework for a general class of probability models. Under global Lipschitz conditions on the operator over the entire Euclidean space-and for a broad class of probabilistic models-we establish a universal…

Machine Learning · Computer Science 2025-11-11 Erhan Bayraktar , Qi Feng , Zecheng Zhang , Zhaoyu Zhang

We develop a minimax theory for operator learning, where the goal is to estimate an unknown operator between separable Hilbert spaces from finitely many noisy input-output samples. For uniformly bounded Lipschitz operators, we prove…

Statistics Theory · Mathematics 2026-03-06 Ben Adcock , Gregor Maier , Rahul Parhi

Infusing deep learning with structural engineering has received widespread attention for both forward problems (structural simulation) and inverse problems (structural health monitoring). Based on Fourier Neural Operator, this study…

Machine Learning · Computer Science 2023-05-22 Chawit Kaewnuratchadasorn , Jiaji Wang , Chul-Woo Kim

This paper introduces new parameterizations of equilibrium neural networks, i.e. networks defined by implicit equations. This model class includes standard multilayer and residual networks as special cases. The new parameterization admits a…

Machine Learning · Computer Science 2020-10-06 Max Revay , Ruigang Wang , Ian R. Manchester

Deep learning models in quantitative finance often operate as black boxes, lacking interpretability and failing to incorporate fundamental economic principles such as no-arbitrage constraints. This paper introduces ARTEMIS (Arbitrage-free…

Machine Learning · Computer Science 2026-03-20 Rahul D Ray

We develop an arbitrage-free deep learning framework for yield curve and bond price forecasting based on the Heath-Jarrow-Morton (HJM) term-structure model and a dynamic Nelson-Siegel parameterization of forward rates. Our approach embeds a…

Mathematical Finance · Quantitative Finance 2025-11-25 Xiang Gao , Cody Hyndman

We study the approximation and statistical complexity of learning collections of operators in a shared multi-task setting, with a focus on the Multiple Neural Operators (MNO) architecture. For broad classes of Lipschitz multiple operator…

Machine Learning · Computer Science 2026-05-22 Adrien Weihs , Hayden Schaeffer

We provide a general framework for no-arbitrage concepts in topological vector lattices, which covers many of the well-known no-arbitrage concepts as particular cases. The main structural condition we impose is that the outcomes of trading…

Functional Analysis · Mathematics 2025-11-21 Eckhard Platen , Stefan Tappe
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