Financial Mathematics (MSc)

Who is it for?

To successfully complete this course, you must have a very good understanding of mathematics. You may well have studied maths, physics or engineering degrees as an undergraduate.

Or you might have a bachelor’s degree in economics or science and in particular computer science, which, coupled with your interest in stochastics, could also qualify you for this programme.

You should have a general interest in learning the more technical and mathematical techniques used in financial markets; but you don’t need to have a background in finance.

Objectives

The MSc Financial Mathematics focuses on stochastics and simulation techniques, but also covers some econometrics. You’ll study core modules covering asset pricing, risk management and an introduction to key financial securities such as equities, fixed income and derivatives.

You’ll cover a wide range of elementary and advanced topics in stochastics, including Levy processes and different simulation techniques. You’ll be taught Matlab and VBA and you have the opportunity to learn other programming languages as part of our electives offering, such as Python or C++.

There are three ways to complete the third term. Either you’ll choose five electives from around 40 optional modules in your final term. Or you can choose to complete a traditional dissertation, known as a ‘business research project’, which counts for four electives, or a shorter ‘applied research project’, which is the equivalent of two elective modules.

Structure

• You will have gained a very good understanding of the technical aspects used in financial markets, including wide ranging financial theory and different financial assets.
• You will gain a good understanding of stochastic and mathematical finance and gained some knowledge of econometrics and forecasting. You will also have obtained a good understanding of programming, in particular Matlab.
• From the MSc Financial Mathematics you will also understand how the theory is being applied in the financial industry and what practical issues are.
• In the third term you have three different options how you can complete your MSc, including a project or choosing only electives. Popular electives include Modelling and Data Analysis, Advanced Financial Engineering and Credit Derivatives, Credit Risk Management, Quantitative Risk Management. Introduction to Python.

Assessment

We review all our courses regularly to keep them up-to-date on issues of both theory and practice.

To satisfy the requirements of the degree course students must complete:

• nine core courses (Eight at 15 credits each, one at 10 credits)

and either

• five electives (10 credits each)
• three electives (10 credits each) and an Applied Research Project (20 credits)
• one elective (10 credits) and a Business Research Project (40 credits)

Assessment of modules on the MSc in Financial Mathematics, in most cases, is by means of coursework and unseen examination. Coursework may consist of standard essays, individual and group presentations, group reports, classwork, unseen tests and problem sets. Please note that any group work may include an element of peer assessment.

Two induction weeks

The Financial Mathematics course starts with two compulsory induction weeks, focused on:

• an introduction to careers in finance and the opportunity to speak to representatives from over 75 companies during a number of different industry specific fairs.
• a reminder course of advanced financial mathematics, statistics and basic computing which forms a prerequisite of the core modules in term 1.

Career pathways

The job opportunities for students from the three quantitative finance master's programmes (MSc Quantitative Finance, MSc Mathematical Trading and Finance and MSc Financial Mathematics) are very similar and students usually find employment with either large investment banks, or smaller specialist companies or financial boutique firms. Working as a quantitative analysts using stochastic, technical risk management position, pricing fixed income securities and structuring are some of the positions Financial Mathematics students are well qualified for. You will also have the skills to study for a PhD in the area of quantitative finance and financial markets.

Visit the Financial Mathematics (MSc) page on the Cass Business School website for more details!