Financial Engineering includes the design, development and implementation of innovative financial instruments and financial means, as well as to provide creative solutions to financial problems.
The concept of financial engineering has two kinds: from the narrow sense and from the broad sense. In a narrow sense, financial engineering mainly refers to the use of advanced mathematics and communication tools, in various existing basic financial products on the basis of different forms of combinational decomposition, to design new financial products to meet customer needs and has specific P/L characters. And generalized financial engineering refers to all the engineering means to solve the financial problems of technology development. It includes not only the financial product design, but also includes all aspects of the pricing of financial products, trading strategy design, financial risk management and so on.
Financial engineering trains modern high-quality compound financial talents with the knowledge of economy, management, law and financial aspects, can develop and design new financial tools and financial instruments, propose creative and personalized schemes to solve the financial problems, conduct financial risk management, corporate finance, investment strategy planning and pricing research of financial products, can engage in multinational corporations and financial institutions for financial management, financial analysis and planning.
2. Core Content
In financial engineering, its core is the development and design to new financial products or business, its essence is to improve efficiency, including:
1). the creation of a new type of financial instrument;
2). development and application of existing tools;
3), based on the existing financial instruments and means, use the combination and decomposition technology to combine new financial products.
3. Operating Procedures
Diagnosis, analysis, development, pricing, delivery, basic process programming
From the project feasibility analysis, to determine the product performance goal and scheme optimization design, product development, pricing model determined simulation test, the application of small batch and feedback correction, until the mass sales, promotion application, each link close order. Most of the innovative new financial products become the instruments of financial engineering to solve other financial related problems, namely, the basic unit of products combination.
4. Financial Efficiency
Financial engineering is the result of market efficiency, and after it is produced, the existence and development of the financial engineering really promote the improvement of financial efficiency.
1) Financial engineering has improved the efficiency of financial institutions.
2) Financial engineering has improved the efficiency of financial markets.
3) Financial engineering has improved the efficiency of financial macro adjustment and control.
5. Training Requirements
1). Master the basic theory and basic technology of financial engineering, familiar with the financial engineering professional closely related to finance, accounting, management, law and other disciplines of the basic knowledge, with a reasonable knowledge structure;
2). Master the scientific research methods and skills of combining qualitative analysis with quantitative analysis, which has strong financial analysis, planning ability and financial innovation ability;
3). Understand the leading edge of financial theory and the development trend of international financial market;
4). with a solid mathematics, econometrics, basic mathematical modeling skills and the skills of empirical research in financial markets;
5). with strong computer application ability, and the ability to obtain information and processing information;
6). with strong business negotiation skills.
6. Main Subjects
7. Main Courses
Economics module; finance module; computer module; mathematics and statistics module. Courses: political economics, microeconomics, macroeconomics, econometrics, money and banking, financial economics, financial markets, investment securities, derivative financial instruments, fixed income securities, financial companies, financial engineering, financial accounting, random process and time series analysis, financial statistics and analysis application, the operation and management of commercial bank, insurance and Actuarial Science, game theory and information economics, financial risk management, investment banking, international finance, international investment and financial law, etc.
8. Employment Prospects
Investment bank, hedge funds, commercial banks and financial institutions, including pricing, model validation, research, develop and risk management, are responsible for derivatives pricing model establishment and application, model verification, model research, program development and risk management, engaged in teaching and research work at colleges and universities.
9. Financial Engineer
Financial engineer refers to the personnel with the certificate issued by authoritative association or corresponding financial institutions through professional training and pass the examination. Different from the traditional analysis personnel of financial theory research and financial markets, financial engineers pay more attention to the financial market and the financial tools operability, the latest technology, the scale of processing mode (Engineering) method applied to financial markets, to create a new financial products, trading, and financial market participants to win profit, risk averse or improve the service.