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Repurposing Deep Limit Order Book Forecasting for Scenario-Conditioned Market Impact Modeling

arXiv · AI, language, vision and robotics · article · Sep 15, 2026 · UTC

Deep Limit Order Book forecasting models capture nonlinear market dynamics, but their ability to quantify the effects of counterfactual order book messages has not been systematically validated. We introduce a model-agnostic framework that compares a trained forecaster's predictive distributions before and after injecting mechanically valid counterfactual messages, defining short-horizon model-implied market impact. A Transformer-based forecaster recovered scenario rankings with a Spearman correlation of 0.99 and 97.2% directional agreement with realized historical outcomes among non-neutral s

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First collected: 2026-09-20T08:40:59.508Z. This is not the publication date.