ARTEMIS: A Neuro Symbolic Framework for Economically Constrained Market Dynamics
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Abstract (arXiv)
Deep learning models in quantitative finance often operate as black boxes, lacking interpretability and failing to incorporate fundamental economic principles such as no-arbitrage constraints. This paper introduces ARTEMIS (Arbitrage-free Representation Through Economic Models and Interpretable Symbolics), a novel neuro-symbolic framework combining a continuous-time Laplace Neural Operator encoder, a neural stochastic differential equation regularised by physics-informed losses, and a differentiable symbolic bottleneck that distils interpretable trading rules. The model enforces economic plausibility via two novel regularisation terms: a Feynman-Kac PDE residual penalising local no-arbitrage violations, and a market price of risk penalty bounding the instantaneous Sharpe ratio. We evaluate ARTEMIS against six strong baselines on four datasets: Jane Street, Optiver, Time-IMM, and DSLOB (a synthetic crash regime). Results demonstrate ARTEMIS achieves state-of-the-art directional accuracy, outperforming all baselines on DSLOB (64.96%) and Time-IMM (96.0%). A comprehensive ablation study confirms each component's contribution: removing the PDE loss reduces directional accuracy from 64.89% to 50.32%. Underperformance on Optiver is attributed to its long sequence length and volatility-focused target. By providing interpretable, economically grounded predictions, ARTEMIS bridges the gap between deep learning's power and the transparency demanded in quantitative finance.
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References · 9
- 2024Foundation Models for Time Series Analysis: A Tutorial and Surveycited by 239
- 2024A Comprehensive Survey of Deep Learning for Time Series Forecasting: Architectural Diversity and Open Challengescited by 47
- 2024Conformal Prediction: A Data Perspectivecited by 25
- 2024Empowering Time Series Analysis with Foundation Models: A Comprehensive Surveycited by 23
- 2025Comprehensive Review of Neural Differential Equations for Time Series Analysiscited by 20
- 2025Time-IMM: A Dataset and Benchmark for Irregular Multimodal Multivariate Time Seriescited by 19
- 2023Deep learning models for price forecasting of financial time series: A review of recent advancements: 2020-2022cited by 17
- 2023Financial Time Series Forecasting using CNN and Transformercited by 15
- 2020Machine Learning Algorithms for Financial Asset Price Forecastingcited by 3
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