Quantitative analyst
From Wikipedia, the free encyclopedia
A quantitative analyst is a person who works in the financial markets developing mathematical models to assist the activities of traders and risk managers within banks and other large corporate institutions. Throughout the industry, such professionals are known as quants.
Historically quants often had a background in mathematics or physics, usually at a PhD level. Fischer Black, an originator of the Black Scholes model, who might be viewed as the first quant, earned his PhD from Harvard in applied mathematics. However the rapid growth of the derivatives industry and increasing sophistication in the use of stochastic calculus to model the markets, led to the creation of specialized Masters and PhD courses in mathematical finance, computational finance, and/or financial reinsurance. Recently a large proportion of new quants have completed these courses, often sponsored by private institutions.
Although the original "quants" were concerned with risk management and derivatives pricing, the meaning of the term has expanded over time to include those individuals involved in almost any application of mathematics in finance. An example is statistical arbitrage.
For an overview of the activities conducted by a quant see computational finance and derivative (finance).
