STORM: A Spatio-Temporal Factor Model Based on Dual Vector Quantized Variational Autoencoders for Financial Trading

In financial trading, factor models are widely used to price assets and capture excess returns from mispricing. Recently, we have witnessed the rise of variational autoencoder-based latent factor models, which learn latent factors self-adaptively. While these models focus on modeling overall market conditions, they often fail to effectively capture the temporal patterns of individual stocks. Additionally, representing multiple factors as single values simplifies the model but limits its ability to capture complex relationships and dependencies. As a result, the learned factors are of low quality and lack diversity, reducing their effectiveness and robustness across different trading periods. To address these issues, we propose a Spatio-Temporal factOR Model based on dual vector quantized variational autoencoders, named STORM, which extracts features of stocks from temporal and spatial perspectives, then fuses and aligns these features at the fine-grained and semantic level, and represents the factors as multi-dimensional embeddings. The discrete codebooks cluster similar factor embeddings, ensuring orthogonality and diversity, which helps distinguish between different factors and enables factor selection in financial trading. To show the performance of the proposed factor model, we apply it to two downstream experiments: portfolio management on two stock datasets and individual trading tasks on six specific stocks. The extensive experiments demonstrate STORM's flexibility in adapting to downstream tasks and superior performance over baseline models.

Enhancing Federated Domain Adaptation with Multi-Domain Prototype-Based Federated Fine-Tuning

Federated Domain Adaptation (FDA) is a Federated Learning (FL) scenario where models are trained across multiple clients with unique data domains but a shared category space, without transmitting private data. The primary challenge in FDA is data heterogeneity, which causes significant divergences in gradient updates when using conventional averaging-based aggregation methods, reducing the efficacy of the global model. This further undermines both in-domain and out-of-domain performance (within the same federated system but outside the local client). To address this, we propose a novel framework called \textbf{M}ulti-domain \textbf{P}rototype-based \textbf{F}ederated Fine-\textbf{T}uning (MPFT). MPFT fine-tunes a pre-trained model using multi-domain prototypes, i.e., pretrained representations enriched with domain-specific information from category-specific local data. This enables supervised learning on the server to derive a globally optimized adapter that is subsequently distributed to local clients, without the intrusion of data privacy. Empirical results show that MPFT significantly improves both in-domain and out-of-domain accuracy over conventional methods, enhancing knowledge preservation and adaptation in FDA. Notably, MPFT achieves convergence within a single communication round, greatly reducing computation and communication costs. To ensure privacy, MPFT applies differential privacy to protect the prototypes. Additionally, we develop a prototype-based feature space hijacking attack to evaluate robustness, confirming that raw data samples remain unrecoverable even after extensive training epochs. The complete implementation of MPFL is available at \url{https://anonymous.4open.science/r/DomainFL/}.

Enhancing Security and Privacy in Federated Learning using Update Digests and Voting-Based Defense

Federated Learning (FL) is a promising privacy-preserving machine learning paradigm that allows data owners to collaboratively train models while keeping their data localized. Despite its potential, FL faces challenges related to the trustworthiness of both clients and servers, especially in the presence of curious or malicious adversaries. In this paper, we introduce a novel framework named \underline{\textbf{F}}ederated \underline{\textbf{L}}earning with \underline{\textbf{U}}pdate \underline{\textbf{D}}igest (FLUD), which addresses the critical issues of privacy preservation and resistance to Byzantine attacks within distributed learning environments. FLUD utilizes an innovative approach, the $\mathsf{LinfSample}$ method, allowing clients to compute the $l_{\infty}$ norm across sliding windows of updates as an update digest. This digest enables the server to calculate a shared distance matrix, significantly reducing the overhead associated with Secure Multi-Party Computation (SMPC) by three orders of magnitude while effectively distinguishing between benign and malicious updates. Additionally, FLUD integrates a privacy-preserving, voting-based defense mechanism that employs optimized SMPC protocols to minimize communication rounds. Our comprehensive experiments demonstrate FLUD's effectiveness in countering Byzantine adversaries while incurring low communication and runtime overhead. FLUD offers a scalable framework for secure and reliable FL in distributed environments, facilitating its application in scenarios requiring robust data management and security.

Sustainable AIGC Workload Scheduling of Geo-Distributed Data Centers: A Multi-Agent Reinforcement Learning Approach

Recent breakthroughs in generative artificial intelligence have triggered a surge in demand for machine learning training, which poses significant cost burdens and environmental challenges due to its substantial energy consumption. Scheduling training jobs among geographically distributed cloud data centers unveils the opportunity to optimize the usage of computing capacity powered by inexpensive and low-carbon energy and address the issue of workload imbalance. To tackle the challenge of multi-objective scheduling, i.e., maximizing GPU utilization while reducing operational costs, we propose an algorithm based on multi-agent reinforcement learning and actor-critic methods to learn the optimal collaborative scheduling strategy through interacting with a cloud system built with real-life workload patterns, energy prices, and carbon intensities. Compared with other algorithms, our proposed method improves the system utility by up to 28.6% attributable to higher GPU utilization, lower energy cost, and less carbon emission.

Economics of Semantic Communication System: An Auction Approach

Semantic communication technologies enable wireless edge devices to communicate effectively by transmitting semantic meaning of data. Edge components, such as vehicles in next-generation intelligent transport systems, use well-trained semantic models to encode and decode semantic information extracted from raw and sensor data. However, the limitation in computing resources makes it difficult to support the training process of accurate semantic models on edge devices. As such, edge devices can buy the pretrained semantic models from semantic model providers, which is called "semantic model trading". Upon collecting semantic information with the semantic models, the edge devices can then sell the extracted semantic information, e.g., information about urban road conditions or traffic signs, to the interested buyers for profit, which is called "semantic information trading". To facilitate both types of the trades, effective incentive mechanisms should be designed. Thus, in this paper, we propose a hierarchical trading system to support both semantic model trading and semantic information trading jointly. The proposed incentive mechanism helps to maximize the revenue of semantic model providers in the semantic model trading, and effectively incentivizes model providers to participate in the development of semantic communication systems. For semantic information trading, our designed auction approach can support the trading between multiple semantic information sellers and buyers, while ensuring individual rationality, incentive compatibility, and budget balance, and moreover, allowing them achieve higher utilities than the baseline method.

Semantic Communication Meets Edge Intelligence

The development of emerging applications, such as autonomous transportation systems, are expected to result in an explosive growth in mobile data traffic. As the available spectrum resource becomes more and more scarce, there is a growing need for a paradigm shift from Shannon's Classical Information Theory (CIT) to semantic communication (SemCom). Specifically, the former adopts a "transmit-before-understanding" approach while the latter leverages artificial intelligence (AI) techniques to "understand-before-transmit", thereby alleviating bandwidth pressure by reducing the amount of data to be exchanged without negating the semantic effectiveness of the transmitted symbols. However, the semantic extraction (SE) procedure incurs costly computation and storage overheads. In this article, we introduce an edge-driven training, maintenance, and execution of SE. We further investigate how edge intelligence can be enhanced with SemCom through improving the generalization capabilities of intelligent agents at lower computation overheads and reducing the communication overhead of information exchange. Finally, we present a case study involving semantic-aware resource optimization for the wireless powered Internet of Things (IoT).

Economics of Semantic Communication System in Wireless Powered Internet of Things

The semantic communication system enables wireless devices to communicate effectively with the semantic meaning of the data. Wireless powered Internet of Things (IoT) that adopts the semantic communication system relies on harvested energy to transmit semantic information. However, the issue of energy constraint in the semantic communication system is not well studied. In this paper, we propose a semantic-based energy valuation and take an economic approach to solve the energy allocation problem as an incentive mechanism design. In our model, IoT devices (bidders) place their bids for the energy and power transmitter (auctioneer) decides the winner and payment by using deep learning based optimal auction. Results show that the revenue of wireless power transmitter is maximized while satisfying Individual Rationality (IR) and Incentive Compatibility (IC).

Federated Learning in the Sky: Aerial-Ground Air Quality Sensing Framework with UAV Swarms

Due to air quality significantly affects human health, it is becoming increasingly important to accurately and timely predict the Air Quality Index (AQI). To this end, this paper proposes a new federated learning-based aerial-ground air quality sensing framework for fine-grained 3D air quality monitoring and forecasting. Specifically, in the air, this framework leverages a light-weight Dense-MobileNet model to achieve energy-efficient end-to-end learning from haze features of haze images taken by Unmanned Aerial Vehicles (UAVs) for predicting AQI scale distribution. Furthermore, the Federated Learning Framework not only allows various organizations or institutions to collaboratively learn a well-trained global model to monitor AQI without compromising privacy, but also expands the scope of UAV swarms monitoring. For ground sensing systems, we propose a Graph Convolutional neural network-based Long Short-Term Memory (GC-LSTM) model to achieve accurate, real-time and future AQI inference. The GC-LSTM model utilizes the topological structure of the ground monitoring station to capture the spatio-temporal correlation of historical observation data, which helps the aerial-ground sensing system to achieve accurate AQI inference. Through extensive case studies on a real-world dataset, numerical results show that the proposed framework can achieve accurate and energy-efficient AQI sensing without compromising the privacy of raw data.

Incentive Mechanism Design for Resource Sharing in Collaborative Edge Learning

In 5G and Beyond networks, Artificial Intelligence applications are expected to be increasingly ubiquitous. This necessitates a paradigm shift from the current cloud-centric model training approach to the Edge Computing based collaborative learning scheme known as edge learning, in which model training is executed at the edge of the network. In this article, we first introduce the principles and technologies of collaborative edge learning. Then, we establish that a successful, scalable implementation of edge learning requires the communication, caching, computation, and learning resources (3C-L) of end devices and edge servers to be leveraged jointly in an efficient manner. However, users may not consent to contribute their resources without receiving adequate compensation. In consideration of the heterogeneity of edge nodes, e.g., in terms of available computation resources, we discuss the challenges of incentive mechanism design to facilitate resource sharing for edge learning. Furthermore, we present a case study involving optimal auction design using Deep Learning to price fresh data contributed for edge learning. The performance evaluation shows the revenue maximizing properties of our proposed auction over the benchmark schemes.