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In this paper we present a continuous time dynamical model of heterogeneous agents interacting in a financial market where transactions are cleared by a market maker. The market is composed of fundamentalist, trend following and contrarian…

Data Analysis, Statistics and Probability · Physics 2008-12-10 Giuseppe Garofalo , Alessandro Sansone

We study optimal liquidation in the presence of linear temporary and transient price impact along with taking into account a general price predicting finite-variation signal. We formulate this problem as minimization of a cost-risk…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Eyal Neuman , Moritz Voß

This paper investigates an optimal control problem where the system is described by a stochastic differential equation with extended mixed delays that contain point delay, extended distributed delay, and extended noisy memory. The model is…

Optimization and Control · Mathematics 2026-01-19 Xinpo Li , Jingtao Shi

A multi-class single-server queueing model with finite buffers, in which scheduling and admission of customers are subject to control, is studied in the moderate deviation heavy traffic regime. A risk-sensitive cost set over a finite time…

Probability · Mathematics 2018-05-02 Rami Atar , Asaf Cohen

In the design of closed-loop networked control systems (NCSs), induced transmission delay between sensors and the control station is an often-present issue which compromises control performance and may even cause instability. A very…

Optimization and Control · Mathematics 2018-08-01 Dipankar Maity , Mohammad H. Mamduhi , Sandra Hirche , Karl Henrik Johansson , John S. Baras

In this paper, we study the optimal control of a discrete-time stochastic differential equation (SDE) of mean-field type, where the coefficients can depend on both a function of the law and the state of the process. We establish a new…

Optimization and Control · Mathematics 2022-10-05 Arzu Ahmadova , Nazim I. Mahmudov

We propose a model in which dividend payments occur at regular, deterministic intervals in an otherwise continuous model. This contrasts traditional models where either the payment of continuous dividends is controlled or the dynamics are…

Optimization and Control · Mathematics 2019-07-24 Jussi Keppo , Max Reppen , H. Mete Soner

In this work we study the optimal execution problem with multiplicative price impact in algorithm trading, when an agent holds an initial position of shares of a financial asset. The inter-selling-decision times are modelled by the arrival…

Mathematical Finance · Quantitative Finance 2018-05-04 Daniel Hernández-Hernández , Harold A. Moreno-Franco , José Luis Pérez

Blockchains, and specifically smart contracts, have promised to create fair and transparent trading ecosystems. Unfortunately, we show that this promise has not been met. We document and quantify the widespread and rising deployment of…

Cryptography and Security · Computer Science 2019-04-11 Philip Daian , Steven Goldfeder , Tyler Kell , Yunqi Li , Xueyuan Zhao , Iddo Bentov , Lorenz Breidenbach , Ari Juels

We consider a type of optimal switching problems with non-uniform execution delays and ramping. Such problems frequently occur in the operation of economical and engineering systems. We first provide a solution to the problem by applying a…

Optimization and Control · Mathematics 2017-02-15 Magnus Perninge

Latency (i.e., time delay) in electronic markets affects the efficacy of liquidity taking strategies. During the time liquidity takers process information and send marketable limit orders (MLOs) to the exchange, the limit order book (LOB)…

Trading and Market Microstructure · Quantitative Finance 2019-08-12 Álvaro Cartea , Sebastian Jaimungal , Leandro Sánchez-Betancourt

A discrete-time stochastic LQ problem with multiplicative noises and state transmission delay is studied in this paper, which does not require any definiteness constraint on the cost weighting matrices. From some abstract representations of…

Optimization and Control · Mathematics 2017-05-30 Yuan-Hua Ni , Cedric Ka-Fai Yiu , Huanshui Zhang , Ji-Feng Zhang

The main contributions of this paper are three fold. First, our primary concern is to investigate a class of stochastic recursive delayed control problems which arise naturally with sound backgrounds but have not been well-studied yet. For…

Optimization and Control · Mathematics 2011-12-06 Li Chen , Jianhui Huang

Differential equations (DE) constrained optimization plays a critical role in numerous scientific and engineering fields, including energy systems, aerospace engineering, ecology, and finance, where optimal configurations or control…

Machine Learning · Computer Science 2024-10-03 Vincenzo Di Vito , Mostafa Mohammadian , Kyri Baker , Ferdinando Fioretto

We introduce a decentralized mechanism for pricing and exchanging alternatives constrained by transaction costs. We characterize the time-invariant solutions of a heat equation involving a (weighted) Tarski Laplacian operator, defined for…

Computer Science and Game Theory · Computer Science 2023-09-14 Hans Riess , Michael Munger , Michael M. Zavlanos

In the present work we develop a formalism to tackle the problem of optimal execution when trading market securities. More precisely, we introduce a utility function that balances market impact and timing risk, with this last being modelled…

Trading and Market Microstructure · Quantitative Finance 2020-07-17 David Marcos

Providing end-to-end network delay guarantees in packet-switched networks such as the Internet is highly desirable for mission-critical and delay-sensitive data transmission, yet it remains a challenging open problem. Due to the looseness…

Information Theory · Computer Science 2020-08-19 Massieh Kordi Boroujeny , Brian L. Mark

The standard approach for compensating liquidity providers on many decentralized exchanges (DEX) for serving as counter-party to swaps is through charging a small percentage of fees. The expected payoff from the cash flow of this mode of…

Mathematical Finance · Quantitative Finance 2022-09-07 Jin Hong Kuan

This article explores the optimisation of trading strategies in Constant Function Market Makers (CFMMs) and centralised exchanges. We develop a model that accounts for the interaction between these two markets, estimating the conditional…

Trading and Market Microstructure · Quantitative Finance 2026-05-06 Sebastian Jaimungal , Yuri F. Saporito , Max O. Souza , Yuri Thamsten

As mobile edge computing (MEC) finds widespread use for relieving the computational burden of compute- and interaction-intensive applications on end user devices, understanding the resulting delay and cost performance is drawing significant…

Networking and Internet Architecture · Computer Science 2022-04-21 Yang Cai , Jaime Llorca , Antonia M. Tulino , Andreas F. Molisch