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Have you got what it take to be Quantitative Analyst?

The tables are turning in the world of finance. Trading floors which were once dominated by traders are now overwhelmingly subjugated by Quantitative Analysts (AKA Quants).

The 2008 financial crisis exposed some of the limitations of financial systems. To reduce risk and prevent future crises, as a result, policy-makers have implemented financial reforms. Regulatory authorities are now requiring unprecedented risk transparency reporting, and investors are demanding better risk infrastructures to protect their investments.

Since the crisis, the risk management industry has been experiencing dramatic growth and it will continue to grow to meet increased regulatory standards. This represents a real opportunity for quants wishing to pursue a career in this field of expertise.

What does a Quants do?

Quantitative Analyst design and implement complex models that allow financial firms to price & trade securities and appropriately makes decisions about risk management. Inherently they are employed primarily by investment banks and hedge funds, but sometimes also by commercial banks, insurance companies and management consultancies, in addition to financial software and information providers.

The demand for Quantitative Analyst is being driven by an explosion of alternative data. Both hedge funds and banks are mining datasets looking for an edge. In order to efficiently mine these data factories, you need extensive data expertise to manage it. That is where quants come in.

The demand for Quantitative Analyst is spurred by:

  • Rapid growth of hedge funds and automated trading systems
  • Increasing complexity of both liquid and illiquid securities
  • Need to give traders, accountants and sales reps access to pricing and risk models
  • Ongoing search for market-neutral investment strategies

A few responsibilities a Quantitative Analyst would face in their working career:

  • Research and analyse market trends and statistics to make modelling decisions
  • Develop and implement complex quantitative models (e.g. models for trading equities) and analytical software/tools
  • Perform daily statistical analyses (e.g. risk analytics, loan pricing, default risk modelling, etc.) and coding tasks (e.g. pattern recognition or machine learning)
  • Detail model specifications and methods of data collection
  • Test new models, products and analytics programs
  • Maintain and modify analytical models while in use
  • Apply or invent independent tools to verify results
  • Collaborate with teams of mathematicians, computer engineers and physicists to develop optimal strategies
  • Consult with financial industry personnel on trading strategies, market dynamics, trading system performance, etc.
  • Generate requirement documentation for software developers
  • Present and interpret data results to senior management and clients

The huge demand and vast responsibilities are well compensated with an average salary of $102. It is not uncommon to hear of $1m+ salaries for certain candidates with the right quantitative skills.

This demand unavoidably attracts immense competition. Employers are inundated with high quality CVs daily. The most successful candidates are those with PhDs and an appetite for creative problem solving.

Contact the Cavendish Professionals technology team to see what roles we have available, alternatively are you looking to fulfill a role in your organisation speak to a member of the team now.