Simulating and analyzing order book data: The queue-reactive model

W Huang, CA Lehalle… - Journal of the American …, 2015‏ - Taylor & Francis
Through the analysis of a dataset of ultra high frequency order book updates, we introduce a
model which accommodates the empirical properties of the full order book together with the …

Limit Order Book Simulations: A Review

K Jain, N Firoozye, J Kochems, P Treleaven - arxiv preprint arxiv …, 2024‏ - arxiv.org
Limit Order Books (LOBs) serve as a mechanism for buyers and sellers to interact with each
other in the financial markets. Modelling and simulating LOBs is quite often necessary} for …

A scaling limit for limit order books driven by Hawkes processes

U Horst, W Xu - SIAM Journal on Financial Mathematics, 2019‏ - SIAM
In this paper we derive a scaling limit for an infinite-dimensional limit order book model
driven by Hawkes random measures. The dynamics of the incoming order flow is allowed to …

The order book as a queueing system: average depth and influence of the size of limit orders

I Muni Toke - Quantitative Finance, 2015‏ - Taylor & Francis
We study the analytical properties of a one-side order book model in which the flows of limit
and market orders are Poisson processes and the distribution of lifetimes of cancelled …

A model for queue position valuation in a limit order book

CC Moallemi, K Yuan - Columbia Business School Research …, 2016‏ - papers.ssrn.com
Many financial markets operate as electronic limit order books under a price-time priority
rule. In this setting, among all resting orders awaiting trade at a given price, earlier orders …

A Markov model of a limit order book: thresholds, recurrence, and trading strategies

F Kelly, E Yudovina - Mathematics of Operations Research, 2018‏ - pubsonline.informs.org
We analyze a tractable model of a limit order book on short time scales, where the dynamics
are driven by stochastic fluctuations between supply and demand. We establish the …

Ergodicity and diffusivity of Markovian order book models: a general framework

W Huang, M Rosenbaum - SIAM Journal on Financial Mathematics, 2017‏ - SIAM
We present a general Markovian framework for order book modeling. Through our
approach, we aim at providing a tool enabling us to get a better understanding of the price …

A functional limit theorem for limit order books with state dependent price dynamics

C Bayer, U Horst, J Qiu - 2017‏ - projecteuclid.org
We consider a stochastic model for the dynamics of the two-sided limit order book (LOB).
Our model is flexible enough to allow for a dependence of the price dynamics on volumes …

A weak law of large numbers for a limit order book model with fully state dependent order dynamics

U Horst, D Kreher - SIAM Journal on Financial Mathematics, 2017‏ - SIAM
This paper studies a limit order book model, in which the order dynamics depend on both,
the current best available prices and the current volume density functions. For the joint …

Hydrodynamic limit of order-book dynamics

X Gao, SJ Deng - Probability in the Engineering and Informational …, 2018‏ - cambridge.org
In this paper, we establish a fluid limit for a two-sided Markov order book model. The main
result states that in a certain asymptotic regime, a pair of measure-valued processes …