# FinToolSyn: A forward synthesis Framework for Financial Tool-Use Dialogue Data with Dynamic Tool Retrieval

arXiv: https://arxiv.org/abs/2603.24051 · HTML: https://mlsanity.com/paper/2603.24051/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use.
- Builds on 16 of its 28 references that are in the map.
- First posted on arXiv 25 Mar 2026.

## Placed in

- LLM agents and tool use / [Financial trading and forecasting agents](https://mlsanity.com/agents/financial-trading-and-forecasting-agents/)

## Builds on (most cited first, 16 of 16)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [BloombergGPT: A Large Language Model for Finance](https://mlsanity.com/paper/2303.17564/) (2023)
- [ToolAlpaca: Generalized Tool Learning for Language Models with 3000 Simulated Cases](https://mlsanity.com/paper/2306.05301/) (2023)
- [CodeAgent: Enhancing Code Generation with Tool-Integrated Agent Systems for Real-World Repo-level Coding Challenges](https://mlsanity.com/paper/2401.07339/) (2024)
- [APIGen-MT: Agentic Pipeline for Multi-Turn Data Generation via Simulated Agent-Human Interplay](https://mlsanity.com/paper/2504.03601/) (2025)
- [Solving Math Word Problems by Combining Language Models With Symbolic Solvers](https://mlsanity.com/paper/2304.09102/) (2023)
- [FinGPT: Instruction Tuning Benchmark for Open-Source Large Language Models in Financial Datasets](https://mlsanity.com/paper/2310.04793/) (2023)
- [RoTBench: A Multi-Level Benchmark for Evaluating the Robustness of Large Language Models in Tool Learning](https://mlsanity.com/paper/2401.08326/) (2024)
- [Facilitating Multi-turn Function Calling for LLMs via Compositional Instruction Tuning](https://mlsanity.com/paper/2410.12952/) (2024)
- [When2Call: When (not) to Call Tools](https://mlsanity.com/paper/2504.18851/) (2025)
- [ToolRerank: Adaptive and Hierarchy-Aware Reranking for Tool Retrieval](https://mlsanity.com/paper/2403.06551/) (2024)
- [ToolFlow: Boosting LLM Tool-Calling Through Natural and Coherent Dialogue Synthesis](https://mlsanity.com/paper/2410.18447/) (2024)
- [ToolMind Technical Report: A Large-Scale, Reasoning-Enhanced Tool-Use Dataset](https://mlsanity.com/paper/2511.15718/) (2025)
- [Equipping Language Models with Tool Use Capability for Tabular Data Analysis in Finance](https://mlsanity.com/paper/2401.15328/) (2024)
- [Beyond the Reported Cutoff: Where Large Language Models Fall Short on Financial Knowledge](https://mlsanity.com/paper/2504.00042/) (2025)

## Built on by (most cited first, 3 of 3)

- [Agentic Trading: When LLM Agents Meet Financial Markets](https://mlsanity.com/paper/2605.19337/) (2026)
- [Mint-Agent: Introducing Finance-Native Agentic Foundation Models](https://mlsanity.com/paper/2608.16386/) (2026)
- [FinExam-10K: When Retrieval Helps Financial Reasoning?](https://mlsanity.com/paper/2608.28155/) (2026)

## Abstract (arXiv)

Tool-use capabilities are vital for Large Language Models (LLMs) in finance, a domain characterized by massive investment targets and data-intensive inquiries. However, existing data synthesis methods typically rely on a reverse synthesis paradigm, generating user queries from pre-sampled tools. This approach inevitably introduces artificial explicitness, yielding queries that fail to capture the implicit, event-driven nature of real-world needs. Moreover, its reliance on static tool sets overlooks the dynamic retrieval process required to navigate massive tool spaces. To address these challenges, we introduce textitFinToolSyn, a forward synthesis framework designed to generate high-quality financial dialogues. Progressing from persona instruction and atomic tool synthesis to dynamic retrieval dialogue generation, our pipeline constructs a repository of 43,066 tools and synthesizes over 148k dialogue instances, incorporating dynamic retrieval to emulate the noisy candidate sets typical of massive tool spaces. We also establish a dedicated benchmark to evaluate tool-calling capabilities in realistic financial scenarios. Extensive experiments demonstrate that models trained on FinToolSyn achieve a 21.06% improvement, providing a robust foundation for tool learning in financial scenarios.