Leveraging Generative Adversarial Networks for Addressing Data Imbalance in Financial Market Supervision

Fuente: arXiv
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Autori principali: Jiang, Mohan, Liang, Yaxin, Han, Siyuan, Ma, Kunyuan, Chen, Yuan, Xu, Zhen
Natura: Preprint
Pubblicazione: 2024
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author Jiang, Mohan
Liang, Yaxin
Han, Siyuan
Ma, Kunyuan
Chen, Yuan
Xu, Zhen
author_facet Jiang, Mohan
Liang, Yaxin
Han, Siyuan
Ma, Kunyuan
Chen, Yuan
Xu, Zhen
contents This study explores the application of generative adversarial networks in financial market supervision, especially for solving the problem of data imbalance to improve the accuracy of risk prediction. Since financial market data are often imbalanced, especially high-risk events such as market manipulation and systemic risk occur less frequently, traditional models have difficulty effectively identifying these minority events. This study proposes to generate synthetic data with similar characteristics to these minority events through GAN to balance the dataset, thereby improving the prediction performance of the model in financial supervision. Experimental results show that compared with traditional oversampling and undersampling methods, the data generated by GAN has significant advantages in dealing with imbalance problems and improving the prediction accuracy of the model. This method has broad application potential in financial regulatory agencies such as the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.
format Preprint
id arxiv_https___arxiv_org_abs_2412_15222
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Leveraging Generative Adversarial Networks for Addressing Data Imbalance in Financial Market Supervision
Jiang, Mohan
Liang, Yaxin
Han, Siyuan
Ma, Kunyuan
Chen, Yuan
Xu, Zhen
Computational Finance
Machine Learning
This study explores the application of generative adversarial networks in financial market supervision, especially for solving the problem of data imbalance to improve the accuracy of risk prediction. Since financial market data are often imbalanced, especially high-risk events such as market manipulation and systemic risk occur less frequently, traditional models have difficulty effectively identifying these minority events. This study proposes to generate synthetic data with similar characteristics to these minority events through GAN to balance the dataset, thereby improving the prediction performance of the model in financial supervision. Experimental results show that compared with traditional oversampling and undersampling methods, the data generated by GAN has significant advantages in dealing with imbalance problems and improving the prediction accuracy of the model. This method has broad application potential in financial regulatory agencies such as the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.
title Leveraging Generative Adversarial Networks for Addressing Data Imbalance in Financial Market Supervision
topic Computational Finance
Machine Learning
url https://arxiv.org/abs/2412.15222