Quantitative finance
Quantitative finance – also referred to as "mathematical finance" – includes those
finance activities where a sophisticated mathematical model is required,and thus
overlaps several of the above.
As a specialized practice area, quantitative finance comprises primarily three
sub-disciplines; Quantitative finance is often synonymous with financial
engineering. This area generally underpins a bank's customer-driven derivatives
business – delivering bespoke OTC-contracts and "exotics", and designing the
various structured products and solutions mentioned – and encompasses
modeling and programming in support of the initial trade, and its subsequent
hedging and management.
Quantitative finance also significantly overlaps financial risk management in
banking, as mentioned, both as regards this hedging, and as regards economic
capital as well as compliance with regulations and the Basel capital / liquidity
requirements.
"Quants" are also responsible for building and deploying the investment strategies
at the quantitative funds mentioned; they are also involved in quantitative
investing more generally, in areas such as trading strategy formulation, and in
automated trading, high-frequency trading, algorithmic trading, and program
trading.
Quantitative finance – also referred to as "mathematical finance" – includes those
finance activities where a sophisticated mathematical model is required,and thus
overlaps several of the above.
As a specialized practice area, quantitative finance comprises primarily three
sub-disciplines; Quantitative finance is often synonymous with financial
engineering. This area generally underpins a bank's customer-driven derivatives
business – delivering bespoke OTC-contracts and "exotics", and designing the
various structured products and solutions mentioned – and encompasses
modeling and programming in support of the initial trade, and its subsequent
hedging and management.
Quantitative finance also significantly overlaps financial risk management in
banking, as mentioned, both as regards this hedging, and as regards economic
capital as well as compliance with regulations and the Basel capital / liquidity
requirements.
"Quants" are also responsible for building and deploying the investment strategies
at the quantitative funds mentioned; they are also involved in quantitative
investing more generally, in areas such as trading strategy formulation, and in
automated trading, high-frequency trading, algorithmic trading, and program
trading.
