When and How Order-Flow Interventions Work After Dealers Adapt
Learning dealer agents can settle on persistently wide quotes, raising what customers pay to trade. A venue can route more orders to tighter quotes, but a wide quote may reflect real risk, and once dealers adapt, an end-to-end comparison cannot show why a rule works: because it intervenes more, picks better moments, is announced in advance, or rewards the right quote. We propose SOFA (State-aligned Order-Flow Allocation), a public order-flow contract with three parts: a State Scorer ranks market states from lagged public data, a Commitment Scheduler announces a budgeted intervention strength before dealers quote, and a Quote-to-Flow Allocator shifts a bounded share of fixed customer deman...
| Authors | Guanghao Wu, Zhuo Cai, Zhidong Li et al. |
|---|---|
| Primary category | cs.AI |
| Published | 13 October 2026 |
| Last updated at source | 13 October 2026 |
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