LQM AUTHORITY
Large Quantitative Models
A Large Quantitative Model is a model whose primary representation and objectives concern structured quantitative state such as distributions, scenarios, regimes, cross-asset relationships, risk factors or other financial variables. The category is defined by representation, training domain, objectives, evaluation and governance—not parameter count alone.
Language interprets the question. Quantitative systems own the numbers.
Representation
The model represents financial variables, relationships, states, scenarios or distributions rather than treating finance only as text.
Evaluation
Statistical fidelity, task fitness, drift, lineage and evidence govern whether a candidate model can be promoted.
Use
LQMs can support scenario generation, synthetic quantitative states, derivatives research, portfolio analysis and other quantitative workflows.
WHAT MAKES THE CATEGORY PRECISE
Definitions need boundaries, not just names.
- Large does not mean parameter count alone.
- Synthetic quantitative states remain labelled generated rather than observed.
- A model result does not create Financial Actions authority.