HyperIV: Real-time Implied Volatility Smoothing

We propose HyperIV, a novel approach for real-time implied volatility smoothing that eliminates the need for traditional calibration procedures. Our method employs a hypernetwork to generate parameters for a compact neural network that constructs complete volatility surfaces within 2 milliseconds, using only 9 market observations. Moreover, the generated surfaces guarantee no static arbitrage. Extensive experiments across 8 index options demonstrate that HyperIV achieves superior accuracy compared to existing methods while maintaining computational efficiency. The model also exhibits strong cross-asset generalization capabilities, indicating broader applicability across different market instruments. These key features -- rapid adaptation to market conditions, guaranteed absence of arbitrage, and minimal data requirements -- make HyperIV particularly valuable for real-time trading applications. We make code available at https://anonymous.4open.science/r/3c2f82ff7e26/.