Compliant Generative Diffusion for Finance

Michael Cardei, Jose M Munoz, Oscar Barrera, Shreyas K Chandrahas, Partha Saha

Keywords: diffusion models, constrained generative AI, synthetic data generation, financial tabular data, simulation, Data augmentation

Abstract: Generative models in finance face the dual challenge of producing realistic data while satisfying strict regulatory and economic objectives, a requirement that standard tabular diffusion models cannot provide. To address this difficulty, we introduce $\textbf{Constrained Tabular Diffusion for Finance}$ (CTDF), a novel integration of sampling-time feasibility operations with mixed-type tabular diffusion in financial applications. By incorporating a training-free feasibility operator into the reverse-diffusion sampling loop, CTDF enforces hard constraints for applications such as simulation, legal compliance, and extrapolation. Experiments on large-scale financial datasets demonstrate zero constraint violations and improvement in scarce data utility. CTDF establishes a robust method for generating trustworthy and compliant synthetic data, enabling compliant generative modeling.

Submission Number: 31