Stepping outside the classroom is not quite the first thing that comes to mind when one thinks of quants, a term commonly used by the financial industry to refer to quantitative analysts. However, in the past weeks, students of the inaugural batch of Singapore Management University (SMU) Master of Science in Quantitative Finance (MQF) programme were treated to a slice of practical industry knowledge outside the classroom.
A unique discipline that straddles across banking and finance, statistics, computer science, and financial mathematics, the SMU MQF programme, which SMU jointly offers with Cass Business School of the City University London, has recently welcomed its first cohort, which draws from a diverse group of 31 high-calibre students from various parts of Asia.
The orientation programme brought the students to Development Bank of Singapore (DBS Bank), which cordially hosted the class of MQF 2012/13 at their premise. Taken on a guided tour of the trading floor, students saw how traders made money decisions executed with deft flicks of a keystroke. It was a rare opportunity to meet with the real quants and definitely an eye-opener for the SMU students. One of them, Wu Jiaying, puts it best, “There’s nothing quite like seeing these things I have heard and read about come to life in front of my very eyes.”
Photo: SMU MQF students visit DBS as part of their orientation.
For Dr. Brian Lo, who heads DBS’ market and liquidity risk department, the importance of grooming the next generation of quantitative finance professionals is clear. He said, “You need to have quant people supporting various areas of the business in front office as well as middle office; in the current climate, graduates who are familiar with the quantitative side of finance, especially with a background in valuation models, risk modeling and balance sheet risk, are at an advantage and will be good for the marketplace.” DBS Bank currently has about 100 quants under its wing.
Photo: SMU students Natalie Huang Zhenyi (left) and Ng Kian Boon (right) with Dr Brian Lo (centre) from DBS.
At SMU, besides acquiring in-depth knowledge of quantitative finance, students of the MQF will also learn the entrepreneurial way of thinking so as to tackle new problems in the quantitative finance industry. Frequent industry talks will also provide students with opportunities to interact with potential employers. Students on the programme will study four core and five elective courses in Singapore, and spend about four months at the Cass Business School in London for five core courses. They are expected to benefit immensely from their experience studying and learning from companies in Singapore and London, both being financial hubs in the world.
“No other Quantitative Finance programme in Singapore offers a four-month exposure in London. Another unique selling point of the SMU MQF is our strong focus on being practice-, industry-, and market-oriented,” said Associate Professor Christopher Ting, who oversees the MQF programme and was himself a proprietary trader in high-frequency trading previously.
Indeed, students get to ‘work’ in the Simulated Trading Lab (also called QF Lab), using a cutting-edge high-frequency trading software sponsored by Trading Technologies International and CQG to ‘trade’.
Most recently on 27 September 2012, SMU also signed a cooperation agreement with Eurex Exchange (Eurex), which pledged to support the QF Lab with market data for teaching and research. Eurex and SMU will also jointly issue research papers on industry-related topics in the near future.
Photo: Deputy Dean of the SMU Lee Kong Chian School of Business (left) and Mr Roland Schwinn (right), Head of Business Development Asia & Middle East, Eurex, at the signing ceremony of the Cooperation Agreement held at SMU on 27 September 2012.
On the SMU-Eurex collaboration, Professor Francis Koh, Deputy Dean of the SMU Lee Kong Chian School of Business, said, “We are excited and honored to be Eurex Exchange’s first university partner in Southeast Asia. Access to high-quality market data in real-time will definitely enhance the value proposition that we provide to all students of the SMU Master of Science in Quantitative Finance programme. The streaming of Eurex market data through CQG, a trading software used by professional traders, will surely enrich the learning experience.”
Ng Kian Boon gave his perspective as a student of the pioneer cohort: “The blend of formal learning coupled with real practical knowledge from outside the classroom had been my reason for choosing SMU. As I look at my schedule, I cannot remember the last time that my calendar looked so packed. This promises to be quite a rewarding and exciting year,” he said.