Affiliation(s): 1School of Mathematics and Physics, Xi ,an Jiaotong-Liverpool University, Suzhou 215123, China
2School of Mathematics, Sun Yat-sen University, Zhuhai 519082, China
3School of Engineering, The Hong Kong University of Science and Technology, Hong Kong 999077, China
4School of Computing and Data Science, The University of Hong Kong, Hong Kong 999077, China
5School of Electrical and Computer Engineering, Sydney University, Sydney 2006, Australia
6Likelihood Lab, Guangzhou 510300, China
Yu KANG1, Xin YANG2, Ge WANG3, Yuda WANG4, Zhanyu WANG5, Mingwen LIU6. Can large language models effectively process and execute financial trading instructions?[J]. Frontiers of Information Technology & Electronic Engineering,in press.https://doi.org/10.1631/FITEE.2500285
@article{title="Can large language models effectively process and execute financial trading instructions?", author="Yu KANG1, Xin YANG2, Ge WANG3, Yuda WANG4, Zhanyu WANG5, Mingwen LIU6", journal="Frontiers of Information Technology & Electronic Engineering", year="in press", publisher="Zhejiang University Press & Springer", doi="https://doi.org/10.1631/FITEE.2500285" }
%0 Journal Article %T Can large language models effectively process and execute financial trading instructions? %A Yu KANG1 %A Xin YANG2 %A Ge WANG3 %A Yuda WANG4 %A Zhanyu WANG5 %A Mingwen LIU6 %J Frontiers of Information Technology & Electronic Engineering %P %@ 2095-9184 %D in press %I Zhejiang University Press & Springer doi="https://doi.org/10.1631/FITEE.2500285"
TY - JOUR T1 - Can large language models effectively process and execute financial trading instructions? A1 - Yu KANG1 A1 - Xin YANG2 A1 - Ge WANG3 A1 - Yuda WANG4 A1 - Zhanyu WANG5 A1 - Mingwen LIU6 J0 - Frontiers of Information Technology & Electronic Engineering SP - EP - %@ 2095-9184 Y1 - in press PB - Zhejiang University Press & Springer ER - doi="https://doi.org/10.1631/FITEE.2500285"
Abstract: The development of large language models (LLMs) has created transformative opportunities for the financial industry, especially in the area of financial trading. However, how to integrate LLMs with trading systems has become a challenge. To address this problem, we propose an intelligent trade order recognition pipeline that enables the conversion of trade orders into a standard format for trade execution. The system improves the ability of human traders to interact with trading platforms while addressing the problem of misinformation acquisition in trade execution. In addition, we create a trade order dataset of 500 pieces of data to simulate the real-world trading scenarios. Moreover, we design several metrics to provide a comprehensive assessment of dataset reliability and the generative power of big models in finance by using five state-of-the-art LLMs on our dataset. The results show that most models generate syntactically valid JavaScript object notation (JSON) at high rates (about 80%-99%) and initiate clarifying questions in nearly all incomplete cases (about 90%-100%). However, end-to-end accuracy remains low (about 6%-14%), and missing information is substantial (about 12%-66%). Models also tend to over-interrogate-roughly 70%-80% of follow-ups are unnecessary-raising interaction costs and potential information-exposure risk. The research also demonstrates the feasibility of integrating our pipeline with the real-world trading systems, paving the way for practical deployment of LLM-based trade automation solutions.
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