A locally-built, LLM-digested index of recent arXiv papers in quant finance, geometry/topology, and statistical ML — keyword search served straight from SQLite on this machine.
Codebook for Institutional Grammar 2.0 simplifies policy encoding.
As we show using the notion of equilibrium in the theory of infinite sequential games, bubbles and escalations are rational for economic and environmental agents, who believe in an infinite world. This goes against a vision of a self regulating, wise and pacific economy in equilibrium. In other words, in this context, …
Issues regarding explainable AI involve four components: users, laws & regulations, explanations and algorithms. Together these components provide a context in which explanation methods can be evaluated regarding their adequacy. The goal of this chapter is to bridge the gap between expert users and lay users. Different…
Model proposes how regulators should oversee complex algorithms in high-stakes applications.
Regulated curves on Banach manifolds with continuous projections and regulated derivatives are studied.
Appropriate traffic regulations, e.g. planned road closure, are important in congested events. Crowd simulators have been used to find appropriate regulations by simulating multiple scenarios with different regulations. However, this approach requires multiple simulation runs, which are time-consuming. In this paper, w…
We show that any objective risk measurement algorithm mandated by central banks for regulated financial entities will result in more risk being taken on by those financial entities than would otherwise be the case. Furthermore, the risks taken on by the regulated financial entities are far more systemically concentrate…
New mechanism designs regulate herding in financial markets.
In a market system, regulations are designed to prevent or rectify market failures that inhibit fair exchange, such as monopoly or transactions with hidden costs. Because regulations reduce profits to those possessing unfair advantage, these advantaged corporations (whether individuals, companies, or other collective o…
MiCA regulation led to a shift in stablecoin dominance.
Risk statistic is a critical factor not only for risk analysis but also for financial application. However, the traditional risk statistics may fail to describe the characteristics of regulator-based risk. In this paper, we consider the regulator-based risk statistics for portfolios. By further developing the propertie…
Narrative disclosures in 10-K filings improve bankruptcy prediction beyond accounting ratios.
Proposes a game-theoretic framework for ML trust regulation.
This paper studies a Value-at-Risk (VaR)-regulated optimal portfolio problem of the equity holders of a participating life insurance contract. In a setting with unhedgeable mortality risk and complete financial market, the optimal solution is given explicitly for contracts with mortality risk using a martingale approac…
The FCA improved insider trading regulation after 2012, reducing abnormal returns.
A deterministic trading strategy by a representative investor on a single market asset, which generates complex and realistic returns with its first four moments similar to the empirical values of European stock indices, is used to simulate the effects of financial regulation that either pricks bubbles, props up crashe…
Proposes guidelines for developing medical AI products.
An asset network systemic risk (ANWSER) model is presented to investigate the impact of how shadow banks are intermingled in a financial system on the severity of financial contagion. Particularly, the focus of this study is the impact of the following three representative topologies of an interbank loan network betwee…
Modeling pollution from competing firms using mean-field games.
Develops new methods for isospectral orbifolds and regulator quotients.
Modern physics has demonstrated that matter behaves very differently as it approaches the speed of light. This paper explores the implications of modern physics to the operation and regulation of financial markets. Information cannot move faster than the speed of light. The geographic separation of market centers means…
This study examines how ChiNext IPOs' initial returns are influenced by regulation regime changes.
Regulated Bitcoin futures led to higher volatility and trading volume.
We announce results on the structure of CAT(0) groups, CAT(0) lattices and of the underlying spaces. Our statements rely notably on a general study of the full isometry groups of proper CAT(0) spaces. Classical statements about Hadamard manifolds are established for singular spaces; new arithmeticity and rigidity state…
We show that the regulator, which is the difference between the homology torsion and the combinatorial Ray-Singer torsion, of fnite abelian coverings of a fixed complex has sub-exponential growth rate.
We investigate a randomization procedure undertaken in real option games which can serve as a basic model of regulation in a duopoly model of preemptive investment. We recall the rigorous framework of [M. Grasselli, V. Leclère and M. Ludkovsky, Priority Option: the value of being a leader, International Journal of Theo…
As regulators pay more attentions to losses rather than gains, we are able to derive a new class of risk statistics, named regulator-based risk statistics with scenario analysis in this paper. This new class of risk statistics can be considered as a kind of risk extension of risk statistics introduced by Kou et al. \ci…
We present a machine learning approach to the solution of chance constrained optimizations in the context of voltage regulation problems in power system operation. The novelty of our approach resides in approximating the feasible region of uncertainty with an ellipsoid. We formulate this problem using a learning model …
Study optimal liquidation strategies in lit and dark pools with and without regulation.
Neural networks help auditors efficiently assess financial statements by learning underlying data patterns.
Regulating causal effects through averaged constraints fails to enforce conditional independence.
DRL improves ESG financial portfolio management by regulating returns based on ESG scores.
The study enhances financial rule matching using NLP without datasets.
Mapping the economy to the some statistical physics models we get strong indications that, in contrary to the pure stock market, the stock market with derivatives could not self-regulate.
We point out a mistake in the main statement of \cite{liu} and suggest and proof a correct statement.
We show that some specific market risk measures implied by current international capital regulation (the Basel Accords and the Capital Adequacy Directive of the European Union) violate the obvious requirement of convexity in some regions in the space of portfolio weights.
A method uses Wasserstein clustering to simplify financial data analysis.
We design and conduct a simple experiment to study whether neural networks can perform several steps of approximate reasoning in a fixed dimensional latent space. The set of rewrites (i.e. transformations) that can be successfully performed on a statement represents essential semantic features of the statement. We can …
Unified AI system for data quality control and governance in regulated environments.
Improved stochastic clocks for financial models without increasing trades.
Self-regulating annealing improves sampling from heavy-tailed datasets.
Introduces an artificial cyber lab to test and identify cyber resilience measures.
AI improves MSME credit scoring using bank statement data.
The Chow-Mumford (CM) line bundle is a functorial line bundle on the base of any family of klt Fano varieties. It is conjectured that it yields a polarization on the moduli space of K-poly-stable klt Fano varieties. Proving ampleness of the CM line bundle boils down to showing semi-positivity/positivity statements abou…
Regulating crypto and DeFi for inclusive economic advancement.
The adoption of deep learning techniques in genomics has been hindered by the difficulty of mechanistically interpreting the models that these techniques produce. In recent years, a variety of post-hoc attribution methods have been proposed for addressing this neural network interpretability problem in the context of g…
We obtain multirelative connectivity statements about spaces of Poincare embeddings, as precursors to analogous statements about spaces of smooth embeddings. The latter are the key to convergence results in the functor calculus approach to spaces of embeddings.
Smart Close-out Netting aims to automate close-out netting processes.