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Trading, Microstructure & Execution

Order books, market making, execution, high-frequency data and trading signals.

Papers featured
538
Last 12 months
25
Cited 100+
1
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SSRN

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Most cited

Featured papers in this topic with the most citations today.

  1. 23 Jan 2025

    FAST: Efficient Action Tokenization for Vision-Language-Action Models

    A new tokenization scheme, Frequency-space Action Sequence Tokenization (FAST), has been proposed for robot actions, facilitating the training of vision-language action policies for complex and high-frequency tasks.

    Machine learningIn Robotics

    673cites
  2. 24 Aug 2023

    Deep Reinforcement Learning for Active High Frequency Trading

    A new Deep Reinforcement Learning framework has been developed for high frequency stock trading, showing potential for profitable long-term strategies.

    arXiv

    51cites
  3. 21 Sep 2023

    Transformers versus LSTMs for electronic trading

    A comparison study of LSTM-based and Transformer-based models for financial time series prediction found that LSTM-based models perform better in difference sequence prediction, despite Transformer-based models having limited advantages in absolute price sequence prediction.

    arXiv

    33cites
  4. 30 Aug 2023

    JAX-LOB: A GPU-Accelerated limit order book simulator to unlock large scale reinforcement learning for trading

    JAX-LOB: The paper introduces JAX-LOB, the first GPU-powered limit order book simulator capable of processing multiple books simultaneously, designed for efficient large-scale simulations of LOB dynamics for research, calibration, and reinforcement learning training.

    arXivIn Proceedings of the Fourth ACM International Conference on AI in Finance

    30cites
  5. 14 Jun 2023

    Deep attentive survival analysis in limit order books: estimating fill probabilities with convolutional-transformers

    A deep learning method outperforms other approaches in estimating filltimes of limit orders.

    arXivIn Quantitative Finance

    28cites
  6. 3 Jan 2024

    Deep Reinforcement Learning for Quantitative Trading

    AI and machine learning are revolutionizing quantitative trading with advanced algorithms, including a new model, QTNet, that uses deep reinforcement learning to manage volatile financial data.

    arXivIn 2024 4th International Conference on Electronics, Circuits and Information Engineering (ECIE)

    27cites
  7. 28 Jun 2023

    Conditional Generators for Limit Order Book Environments: Explainability, Challenges, and Robustness

    Conditional generative models used for order book simulation, enhanced with adversarial attacks.

    arXivIn Proceedings of the Fourth ACM International Conference on AI in Finance

    27cites
  8. 10 Apr 2024

    StockGPT: A GenAI Model for Stock Prediction and Trading

    The study introduces StockGPT, a model that predicts stock return dynamics using AI, showcasing the potential of AI in complex financial investment decisions.

    arXiv

    26cites
  9. 24 May 2023

    E-backtesting

    A new backtesting procedure for Expected Shortfall forecasts is proposed using e-values and e-processes.

    arXiv

    23cites
  10. 5 Jun 2024

    HLOB - Information Persistence and Structure in Limit Order Books

    A new deep learning model, HLOB, has been developed for predicting Limit Order Book mid-price changes, outperforming nine other models and offering new insights into information distribution in Limit Order Books.

    arXivIn Expert systems with applications

    21cites
  11. 27 Nov 2024

    Strict Universality of the Square-Root Law in Price Impact across Stocks: A Complete Survey of the Tokyo Stock Exchange.

    Research using Tokyo Stock Exchange data supports the econophysics theory that average price impact follows a power law in relation to transaction volume.

    arXivIn Physical review letters

    20cites
  12. 22 May 2024

    Major Issues in High-frequency Financial Data Analysis: A Survey of Solutions

    Recent studies on issues in high-frequency financial data analysis, such as nonstationarity and low signal-to-noise ratios, are categorized into data preprocessing and quantitative methods.

    SSRN

    20cites

Latest

  1. 25 Sep 2026

    Robust Market Making with Hawkes Order Flow and Price Impact via Adversarial Reinforcement Learning

    The research extends adversarial reinforcement learning for market making to handle self-exciting order arrivals and price impact, using an LSTM module to improve robustness in complex microstructure environments.

    arXiv

    0cites
  2. 25 Sep 2026

    Liquidity Provision and Rebate Design in Option Markets

    Develops a nested optimization model for market making and rebate design in option markets, showing how exchanges can set fees to incentivize liquidity provision and improve market depth.

    arXiv

    0cites
  3. 25 Sep 2026

    Feasible Multi-Asset Optimal Execution under Cash Constraints

    Extends the Almgren-Chriss optimal execution framework to enforce intertemporal cash constraints, reducing peak cash drawdown while maintaining implementation shortfall in multi-asset rebalancing.

    arXiv

    0cites
  4. 25 Sep 2026

    Rule-Based Pricing Algorithms and Market Outcomes: An Experimental Study

    Experiments show that algorithm design features like warnings, pre-configured strategies, and LLM advice raise market prices by increasing starting prices and fostering cooperative algorithm designs.

    arXiv

    0cites
  5. 25 Sep 2026

    Algorithmic Collusion by Reinforcement-Learning Pricing Agents: Simulation Evidence and Implications for Financial Markets and Competition Law

    Q-learning pricing agents in simulated duopolies reach supracompetitive outcomes with no communication, achieving collusion indices of 0.778 and 40% profit gains over competitive benchmarks.

    SSRN

    4fanfare
  6. 25 Sep 2026

    Incentives at Play: Fee-Induced Volume on a Regulated Perpetual Futures Venue

    Analysis of Kalshi's regulated Bitcoin and Ethereum futures reveals that 39-48% of notional trades are mechanical fixed-size orders that vanish when fees are charged, indicating costless artificial volume rather than legitimate trading.

    SSRN

    3fanfare
  7. 25 Sep 2026

    Settlement Risk and Currency Markets

    Hungary's 2015 adoption of payment-versus-payment settlement reduced currency excess returns by ten basis points, demonstrating settlement risk is a priced friction limiting arbitrage.

    SSRN

    3fanfare
  8. 25 Sep 2026

    Fedspeak, LLM-Derived Signals, and High-Frequency Trading

    Semantic and tonal shifts across sequential Federal Reserve communications generate significant intraday price movements and abnormal volume, revealing incomplete information absorption at initial announcement.

    SSRN

    2fanfare
  9. 25 Sep 2026

    Elastic in cash, inelastic in repo: Hedge funds in the treasury and repo markets

    Using German sovereign bond repo data, the research shows hedge funds are price-elastic in cash markets but highly inelastic in repo, inheriting elasticity from their cash-market counterparties.

    RePEc

    3fanfare
  10. 25 Sep 2026

    Taming Volatility, Feeding Crashes: Evidence from Algorithmic Trading in China's Agricultural Futures Markets

    The study finds that algorithmic trading lowers realized volatility but increases tail co-movement and asymmetry in China's corn and soybean futures markets.

    RePEc

    2fanfare
  11. 4 Mar 2026

    TradeFM: A Generative Foundation Model for Trade-flow and Market Microstructure

    A Model for Trade-Flow in Market Microstructure: TradeFM is a new AI model that improves the analysis of market structures by studying billions of trade events in stocks, leading to better simulations of financial returns.

    arXiv

    4cites
  12. 28 Dec 2025

    Optimal Trading with Costs and Predictability

    It establishes optimal trading rules for multiple assets with predictable returns, showing performance benefits through simulations.

    SSRNFeatured 2×

    630shares
  13. 19 Dec 2025

    Romania's Roadmap to a Greener Financial System: An analysis of Environmental, Social and Governance Reporting on the Bucharest Exchange Trading Index

    Romania struggles to attract sustainable investments because its major companies have low transparency and high greenhouse gas emissions.

    SSRNFeatured 2×

    3cites
  14. 19 Dec 2025

    Interpretable Hypothesis-Driven Trading:A Rigorous Walk-Forward Validation Framework for Market Microstructure Signals

    The authors introduce a walk-forward validation technique for algorithmic trading that focuses on interpretability and robust testing, offering modest gains and strong protection against losses.

    arXiv

    0cites
  15. 19 Dec 2025

    Fixed-Income Pricing and the Replication of Liabilities

    This paper presents a model-free method for pricing fixed-income assets and replicating liabilities, linking no arbitrage with a positive discount curve to guide investment and regulatory approaches.

    arXiv

    0cites
  16. 19 Dec 2025

    Pattern Recognition of Aluminium Arbitrage in Global Trade Data

    A study found that efforts to reduce carbon emissions in the aluminum industry have led to illegal trade practices, highlighting the need for new customs enforcement strategies.

    arXiv

    0cites
  17. 1 Dec 2025

    Adaptive Dueling Double Deep Q-networks in Uniswap V3 Replication and Extension with Mamba

    The report enhances a deep reinforcement learning model for liquidity provision in Uniswap V3, showing better performance and theoretical backing compared to the original.

    arXiv

    0cites
  18. 12 Nov 2025

    A Step Towards a Solution to the Confidence-Driven Liquidity Trap Morass

    Cutting the model’s future‑state complexity removes an expectations “trap,” gives a single equilibrium, and implies government spending always raises consumption (potentially by a large amount).

    arXiv

    0cites
  19. 4 Nov 2025

    Differential Beliefs in Financial Markets Under Information Constraints: A Modeling Perspective

    Shows how a mathematical model explains why prices and trader biases converge as traders get more information, and gives the best way to combine expert opinions to hunt for arbitrage.

    arXiv

    0cites
  20. 4 Nov 2025

    The Omniscient, yet Lazy, Investor

    Shows a perfectly informed but slow trader has a single optimal waiting time between trades set by execution costs and the price path's roughness (Hurst/fractal), supported by theory and data.

    arXiv

    0cites
  21. 4 Nov 2025

    PEARL: Private Equity Accessibility Reimagined with Liquidity

    Liquid Private‑Equity Replication: Introduces PEARL, an AI method that reconstructs private‑equity returns from liquid assets using timing and leverage adjustments to better match quarterly PE benchmarks.

    arXiv

    0cites
  22. 27 Oct 2025

    Robust insurance pricing and liquidity management

    Accounting for model uncertainty makes insurers set higher, more conservative prices and liquidity buffers, widens capacity ranges, and produces much longer underwriting cycles with more time in low‑capacity states.

    arXivIn Journal of Risk and Insurance

    2cites
  23. 24 Oct 2025

    HighFrequency Trading Impact

    The paper discusses the effects of high-frequency trading on market factors like volatility, transaction costs, and liquidity, indicating varied opinions in the financial sector.

    RePEc

    90shares
  24. 9 Oct 2025

    A Microstructure Analysis of Coupling in CFMMs

    The article investigates the impact of smart contract protocols on market dynamics, focusing on their influence on price drift, trade size, and market depth in coupled markets.

    arXiv

    1cites
  25. 3 Oct 2025

    Mean-field theory of the Santa Fe model revisited: a systematic derivation from an exact BBGKY hierarchy for the zero-intelligence limit-order book model

    The Santa Fe model, used for analyzing the dynamics of the limit order book, is reevaluated using kinetic theory, leading to a new equation for the order-book density profile and identifying a previous error by E. Smith and colleagues.

    arXivFeatured 2×

    0cites
  26. 13 Sep 2025

    Optimal Exit Time for Liquidity Providers in Automated Market Makers

    The study investigates the best way for a liquidity provider to withdraw liquidity in an automated market, balancing fees and potential losses, and offers insights into dynamic liquidity provision.

    arXiv

    3cites
  27. 13 Sep 2025

    Painting the market: generative diffusion models for financial limit order book simulation and forecasting

    A new method for simulating financial market data transforms limit order book data into an image format and uses diffusion models to predict future states, showing top performance on LOB-Bench.

    arXivFeatured 2×

    2cites
  28. 29 Aug 2025

    Bimodal dynamics of the artificial limit order book stock exchange with autonomous traders

    The paper uncovers the inherent bistability and complex dynamics of an artificial stock market exchange, which emerge from micro-level trading rules.

    arXivIn Communications in Nonlinear Science and Numerical Simulation

    1cites
  29. 29 Aug 2025

    Detecting Multilevel Manipulation from Limit Order Book via Cascaded Contrastive Representation Learning

    The study suggests a learning framework to enhance the detection of trade-based manipulation in financial markets, with Transformer-based architectures proving most successful.

    arXiv

    1cites
  30. 12 Aug 2025

    Optimal Fees for Liquidity Provision in Automated Market Makers

    The research investigates the earnings of passive liquidity providers in automated markets, suggesting that optimal fees should balance volume attraction and revenue generation, and dynamic fees can enhance results.

    arXiv

    8cites

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