Financial Quantitative Analysts

Finance

Level 5489 of 1200 points

Job description

Financial Quantitative Analysts

Job purpose

To develop, maintain and independently verify the mathematical, statistical and econometric models used for derivative valuation, securities investing, pricing, risk management and asset optimisation, and to interpret and report their results, so that trading and risk decisions rest on quantitative evidence that is technically sound and demonstrably reliable.

Skills

Advanced command of applied mathematics and statistics — calculus, probability, econometric and quantitative technique — applied to financial markets, banking and the reporting of financial data, with the computing knowledge to build model libraries and the written English to set out results for a non-quantitative reader. A master's degree is the norm, with a substantial minority holding a bachelor's degree and a small number a doctorate, together with extensive related experience, the specialist technique being expected on appointment rather than acquired in post.
Confers with other financial engineers and analysts on trading strategies, market dynamics and trading system performance, and consults traders on where improved analytical applications are needed. Provides analytical support to researchers and traders on valuations and data, explains what results mean and how they may be used, and produces written summary reports of financial research. Advises management on technical matters and coaches less experienced colleagues.
Researches and develops analytical tools for portfolio construction and optimisation, performance measurement, attribution and pricing, and devises independent models to verify what existing analytical systems produce. Assesses whether new financial products or analytics are useful, and develops measures of environmental, social and governance performance and of carbon exposure. Problems are open, mathematically demanding and often without settled precedent; the specification itself must be reasoned out, and error carries consequences for colleagues and company results.
Defines or recommends model specifications and data collection methods, prepares requirements documentation for software developers, and maintains or modifies every analytical model in use while supporting traders on live questions. Determines own tasks, priorities and goals, and works to market and project timescales under time pressure.
Work is carried out seated at a workstation, using programming and analytical software. No manual handling or dexterity demands.

Responsibilities

No line management is recorded. Coordinates and leads others in accomplishing work activities, carries some responsibility for the work outcomes of colleagues, and collaborates with product development teams and software developers on testing new analytical software against user requirements.
Holds no budget and commits no funds. The models, valuations and pricing tools produced inform investing, trading strategy, hedging and asset allocation decisions taken by traders and management, and profit and loss measurement and performance attribution depend on them, so the money influenced is considerable while the authority to deploy it rests elsewhere.
Ordinary care of a workstation and of the analytical model library and quantitative software maintained on the organisation's behalf. Identifies, tracks and maintains metrics for trading system operations.
Owns the organisation's core analytical capability: model specifications, data collection methods, model documentation and written research reports. Exactness is essential, since a defect in a model propagates into valuations and positions before it becomes visible.

Effort required

Prolonged and exacting analytical concentration on model construction, derivation and testing, where accuracy is decisive and a small specification error changes a result materially. Judgement is exercised on incomplete information about market behaviour, and decisions are frequent and taken under time pressure, with consequences reaching colleagues and company results.
Personal accountability for quantitative conclusions that traders and management act on, including verifying and at times contradicting the output of established systems, in a competitive market environment. No exposure to distress, conflict or hostility is recorded.
Seated work at a screen for most of the working day. No lifting or exertion.

Working conditions

Indoor, environmentally controlled office work, with no hazardous conditions or equipment, contaminants, noise or outdoor working recorded. Contact is heavy in volume — e-mail, telephone and face-to-face discussion within teams — and the setting is competitive, but no adverse exposure is evidenced.
Most incumbents work a regular established schedule, and for three quarters the working week runs beyond forty hours; a minority work irregular patterns tied to production or contract demands, and no shift, seasonal or on-call requirement is recorded. Substantial freedom to determine tasks, priorities and goals, with personal accountability for the technical defensibility of every model in use.

Skills

40% · 287 points▾

KnowledgeLevel 5 of 8
90 of 144 points
Specialised and theoretical knowledge within a field of work and an awareness of the limits of that knowledge. The job requires a comprehensive range of cognitive and practical knowledge to develop creative solutions to abstract problems.
Interpersonal and communication skillsLevel 4 of 5
77 of 96 points
Advanced communication and interpersonal skills. The job holder is required to manage complex interactions, mediate interpersonal conflicts and support group collaboration.
Problem-solving skillsLevel 4 of 5
77 of 96 points
Non-standard problems. The job involves solving complex, non-standard problems involving multiple factors to consider. Solutions often require careful analysis and the adaptation of current methods.
Planning and organisational skillsLevel 3 of 5
43 of 72 points
Moderate organisational skills required. The job requires the organising and prioritising of multiple tasks, with some level of adjustment to plans on the basis of changing circumstances or deadlines.
Physical skillsLevel 0 of 5
0 of 72 points
Not applicable. The job does not require any particular physical skills (although there is likely to be some physical activity).

Responsibility

35% · 87 points▾

PeopleLevel 1 of 5
29 of 144 points
Very limited. Not required to supervise or perform a caregiving role. The job may involve providing basic guidance to or orientation for others, such as helping new colleagues settle in.
Goods and equipmentLevel 0 of 5
0 of 84 points
Not applicable. The job does not involve any responsibility for goods or equipment.
InformationLevel 3 of 5
58 of 96 points
Moderate responsibility for information. The job involves managing information to ensure it is accurate, of high quality and secure. The job holder may make decisions about the handling of sensitive data.
Financial resourcesLevel 0 of 5
0 of 96 points
Not applicable. The job does not require any responsibility for financial resources.

Effort

15% · 91 points▾

Mental effortLevel 4 of 5
48 of 60 points
Very high level of mental effort. The job requires continuous high-level mental concentration, with few or no breaks, involving intellectually demanding tasks that require continuous focus.
Psychosocial and emotional effortLevel 3 of 5
43 of 72 points
Moderate psychosocial and emotional effort. The job requires the regular management of emotional responses, such as dealing with sensitive or challenging individuals or situations.
Physical effortLevel 0 of 5
0 of 48 points
Not applicable. The job does not require any physical effort.

Working Conditions

10% · 24 points▾

Environment (physical, psychological or emotional)Level 1 of 5
17 of 84 points
Minimal exposure to hazards or stress. The job involves little or no exposure to physical hazards (e.g. chemicals, moving equipment, noise) and minimal emotional or psychological risks (e.g. occasional routine tasks with no emotional burden). There is minor exposure to dust, dirt, fumes, noise, waste, poor lighting, etc.
Organisational environmentLevel 1 of 5
7 of 36 points
Minimal organisational demands. The job requires standard working hours with no night shifts or irregular schedules. There is little or no need for travel or digital connectivity beyond typical working hours.