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Traders buy and sell financial instruments in hopes of making profit, and brokers are responsible for the transaction. There are several hypotheses and conspiracy theories arguing that in some situations, brokers want their traders to lose…

交易与市场微观结构 · 定量金融 2022-06-03 Manuel Lafond

Pair trading is one of the most effective statistical arbitrage strategies which seeks a neutral profit by hedging a pair of selected assets. Existing methods generally decompose the task into two separate steps: pair selection and trading.…

计算金融 · 定量金融 2023-09-26 Weiguang Han , Boyi Zhang , Qianqian Xie , Min Peng , Yanzhao Lai , Jimin Huang

Auctions are markets with strict regulations governing the information available to traders in the market and the possible actions they can take. Since well designed auctions achieve desirable economic outcomes, they have been widely used…

人工智能 · 计算机科学 2009-04-14 Jinzhong Niu , Simon Parsons

Portfolio management is a fundamental problem in finance. It involves periodic reallocations of assets to maximize the expected returns within an appropriate level of risk exposure. Deep reinforcement learning (RL) has been considered a…

计算金融 · 定量金融 2022-10-05 Hui Niu , Siyuan Li , Jian Li

Execution algorithms are vital to modern trading, they enable market participants to execute large orders while minimising market impact and transaction costs. As these algorithms grow more sophisticated, optimising them becomes…

计算金融 · 定量金融 2025-10-28 Ollie Olby , Andreea Bacalum , Rory Baggott , Namid Stillman

We present a novel agent-based approach to simulating an over-the-counter (OTC) financial market in which trades are intermediated solely by market makers and agent visibility is constrained to a network topology. Dynamics, such as changes…

计量经济学 · 经济学 2024-05-07 James T. Wilkinson , Jacob Kelter , John Chen , Uri Wilensky

We apply Reinforcement Learning algorithms to solve the classic quantitative finance Market Making problem, in which an agent provides liquidity to the market by placing buy and sell orders while maximizing a utility function. The optimal…

机器学习 · 计算机科学 2021-04-12 Matias Selser , Javier Kreiner , Manuel Maurette

We present a new model for prediction markets, in which we use risk measures to model agents and introduce a market maker to describe the trading process. This specific choice on modelling tools brings us mathematical convenience. The…

计算机科学与博弈论 · 计算机科学 2014-03-05 Jinli Hu , Amos Storkey

Trade-based manipulation (TBM) undermines the fairness and stability of financial markets drastically. Spoofing, one of the most covert and deceptive TBM strategies, exhibits complex anomaly patterns across multilevel prices, while often…

计算金融 · 定量金融 2025-10-13 Yushi Lin , Peng Yang

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…

交易与市场微观结构 · 定量金融 2019-12-12 Svitlana Vyetrenko , David Byrd , Nick Petosa , Mahmoud Mahfouz , Danial Dervovic , Manuela Veloso , Tucker Hybinette Balch

Imitation learning is an effective alternative approach to learn a policy when the reward function is sparse. In this paper, we consider a challenging setting where an agent and an expert use different actions from each other. We assume…

机器学习 · 计算机科学 2019-08-27 Konrad Zolna , Negar Rostamzadeh , Yoshua Bengio , Sungjin Ahn , Pedro O. Pinheiro

Reinforcement learning (RL) is an innovative approach to financial decision making, offering specialized solutions to complex investment problems where traditional methods fail. This review analyzes 167 articles from 2017--2025, focusing on…

计算金融 · 定量金融 2025-12-12 Mohammad Rezoanul Hoque , Md Meftahul Ferdaus , M. Kabir Hassan

A numerical agent-based spin model of financial markets, based on the Potts model from statistical mechanics, with a novel interpretation of the spin variable (as regards financial-market models) is presented. In this model, a value of the…

统计金融 · 定量金融 2021-04-28 Mateusz Denys

Most finance studies are discussed on the basis of several hypotheses, for example, investors rationally optimize their investment strategies. However, the hypotheses themselves are sometimes criticized. Market impacts, where trades of…

计算金融 · 定量金融 2022-02-03 Takanobu Mizuta , Isao Yagi , Kosei Takashima

We analyze sources of error in prediction market forecasts in order to bound the difference between a security's price and the ground truth it estimates. We consider cost-function-based prediction markets in which an automated market maker…

计算机科学与博弈论 · 计算机科学 2018-02-22 Miroslav Dudík , Sébastien Lahaie , Ryan Rogers , Jennifer Wortman Vaughan

The problem of market clearing is to set a price for an item such that quantity demanded equals quantity supplied. In this work, we cast the problem of predicting clearing prices into a learning framework and use the resulting models to…

机器学习 · 计算机科学 2019-06-25 Weiran Shen , Sébastien Lahaie , Renato Paes Leme

With the digitalization of the financial market, dealers are increasingly handling market-making activities by algorithms. Recent antitrust literature raises concerns on collusion caused by artificial intelligence. This paper studies the…

交易与市场微观结构 · 定量金融 2022-06-14 Bingyan Han

Companies across all economic sectors continue to deploy large language models at a rapid pace. Reinforcement learning is experiencing a resurgence of interest due to its association with the fine-tuning of language models from human…

机器学习 · 计算机科学 2025-02-25 David Byrd

We investigate the mechanisms by which medium-frequency trading agents are adversely selected by opportunistic high-frequency traders. We use reinforcement learning (RL) within a Hawkes Limit Order Book (LOB) model in order to replicate the…

交易与市场微观结构 · 定量金融 2025-11-03 Ali Raza Jafree , Konark Jain , Nick Firoozye

Motivated by the prevalence of prediction problems in the economy, we study markets in which firms sell models to a consumer to help improve their prediction. Firms decide whether to enter, choose models to train on their data, and set…

理论经济学 · 经济学 2025-10-10 Krishna Dasaratha , Juan Ortner , Chengyang Zhu