Computational finance or financial engineering is a cross-disciplinary field which
well as facilitating the
of those decisions. Utilizing various
methods, practitioners of computational finance aim to precisely determine the
Generally, individuals who fill positions in computational finance are known as
”, referring to the quantitative skills necessary to perform the job.
Specifically, knowledge of the
C++ programming language
, as well as of the
mathematical subfields of:
often entry level requisites for such a position. C++ has become the dominant
language for two main reasons: the computationally intensive nature of many
algorithms, and the focus on libraries rather than applications.
Computational finance was traditionally populated by
in finance, physics
and mathematics who moved into the field from more pure, academic
backgrounds (either directly from graduate school, or after teaching or research).
However, as the actual use of computers has become essential to rapidly carrying
out computational finance decisions, a background in computer programming has
become useful, and hence many computer programmers enter the field either from
Ph.D. programs or from other fields of
. In recent years,
advanced computational methods, such as
have opened new doors in computational finance. Practitioners of
computational finance have come from the fields of
computational fluid dynamics
Today, all full service institutional finance firms employ computational finance
professionals in their banking and finance operations (as opposed to being
specialists), while there are many other boutique
firms ranging from 20 or fewer employees to several thousand that specialize in
quantitative trading alone.
was one of the first firms to
create a large derivatives business and employ computational finance (including
through the formation of
is probably the
oldest and largest quant fund (
Citadel Investment Group
is a major rival).