Editing Finance (section)

===Quantitative finance===
[[File:Dojima-Rice-Exchange-Osaka-by-Yoshimitsu-Sasaki.png|thumb|right|alt=Dōjima Rice Exchange, the world's first futures exchange, established in Osaka in 1697.|[[Dōjima Rice Exchange]], the world's first [[futures exchange]], established in [[Osaka]] in 1697]]
{{main|Quantitative analysis (finance)}}
Quantitative finance—also referred to as "mathematical finance"—includes those finance activities where [[Financial modeling#Quantitative finance|a sophisticated mathematical model]] is required,<ref name="SIAM">See discussion here: {{cite web |url=https://www.siam.org/Portals/0/Student%20Programs/Thinking%20of%20a%20Career/brochure.pdf |archive-url=https://web.archive.org/web/20190305095047/https://www.siam.org/Portals/0/Student%20Programs/Thinking%20of%20a%20Career/brochure.pdf |archive-date=2019-03-05 |url-status=live |title=Careers in Applied Mathematics|publisher=[[Society for Industrial and Applied Mathematics]]}}</ref> and thus overlaps several of the above.

As a specialized practice area, quantitative finance comprises primarily three sub-disciplines; the underlying theory and techniques [[#Financial mathematics|are discussed]] in the next section:
# Quantitative finance is often synonymous with [[financial engineering]]. This area generally underpins a bank's [[Investment banking#Sales and trading|customer-driven derivatives business]]—delivering bespoke [[Over-the-counter (finance)#Contracts|OTC-contracts]] and [[exotic derivative|"exotics"]], and [[Structured product#Product design and manufacture|designing]] the various structured products and solutions mentioned—and encompasses [[Financial modeling#Quantitative finance|modeling and programming]] in support of the initial trade, and its subsequent hedging and management.
# Quantitative finance also significantly overlaps [[financial risk management]] in banking, as [[#Risk management|mentioned]], both as regards this hedging, and as regards economic capital as well as compliance with regulations and [[Basel III|the Basel capital / liquidity requirements]].
# "Quants" are also responsible for building and deploying the investment strategies at the quantitative funds [[#Investment management|mentioned]]; they are also involved in [[Outline of finance#Quantitative investing|quantitative investing]] more generally, in areas such as [[trading strategy]] formulation, and in [[automated trading]], [[high-frequency trading]], [[algorithmic trading]], and [[program trading]].