International Association Of Financial Engineers - IAFE

DEFINITION of 'International Association Of Financial Engineers - IAFE'

A not-for-profit, professional society dedicated to promoting the field of quantitative finance by providing platforms to discuss current and fundamental issues in the profession. The International Association of Financial Engineers was founded in 1992 and is comprised of academics and professionals from banks, broker dealers, hedge funds, pension funds, asset managers, technology firms, regulators, accounting, consulting and law firms, and universities worldwide.


Members of the IAFE have access to members-only content on the organization's web site; access to IAFE Committees (area-specific initiatives to discuss policy issues in depth, including investor risk, operational risk, technology and education); attendance to IAFE evening forums; and discounts to certain industry journals and IAFE endorsed conferences.

BREAKING DOWN 'International Association Of Financial Engineers - IAFE'

Financial engineering is a cross-disciplinary field that utilizes computational intelligence, mathematical finance and statistical modeling, to analyze and predict market activity in order to make more informed investing, trading and hedging decisions. Risk management is a key aspect of financial engineering and practitioners attempt to calculate the financial risk posed by specific investments. Financial engineers are often referred to as "quants" because of the quantitative skills required of the profession. Financial engineers are typically well-versed in the C++ programming language and math subfields, including stochastic calculus, multivariate calculus, linear algebra, differential equations, probability theory and statistical inference.


Also called computational finance.

RELATED TERMS
  1. Financial Engineering

    The use of mathematical techniques to solve financial problems. ...
  2. Rocket Scientist

    In the world of finance, these are people with science and math ...
  3. Quant Fund

    An investment fund that selects securities based on quantitative ...
  4. Quantitative Analysis

    A business or financial analysis technique that seeks to understand ...
  5. Value Engineering

    A systematic and organized approach to provide the necessary ...
  6. Quantitative Trading

    Trading strategies based on quantitative analysis which rely ...
Related Articles
  1. Managing Wealth

    The Highest-Paying Engineering Careers

    Learn more about some of the highest-paying jobs in field of engineering. With just a bachelor's degree, most engineers in these jobs make well over $100,000.
  2. Managing Wealth

    Quantitative Analyst: Career Path & Qualifications

    Learn about the work that quantitative financial analysts do everyday, and determine what it takes to become a successful professional in the field.
  3. Retirement

    Retirement Tips for Engineers

    Learn specific retirement strategies for engineers. Tips include taking advantage of higher-than-average salaries to grow a sufficient retirement nest egg.
  4. Markets

    Want a Giant Salary? Here's What to Major In

    The stability, high starting salaries and job growth are just a few reasons why students would be smart to consider studying for work in these two sectors.
  5. Financial Advisor

    Financial Engines Broadens Advice Offerings

    Financial Engines is broadening its services to include insurance and healthcare advice.
  6. Financial Advisor

    Next for Robo-Advisors: A Human Touch?

    Robo-advisors are turning the business of providing investment and financial advice on its head as more important players jump on board in varying ways.
  7. Markets

    3 High-Paying Academic Jobs With Good Pensions

    Find out which academic posts have the most attractive salaries and benefits, and why college faculty and staff tend to survive economic downturns.
  8. Markets

    Best Websites For Engineering Jobs

    Start with industry-specialized websites, but cast a wide net to look for engineering jobs that are the best fit for your goals and skills.
  9. Investing

    Quants: The Rocket Scientists Of Wall Street

    As securities grow more complex, demand increases for people who can use them to generate profits with minimal risk.
  10. Financial Advisor

    The Top 6 SEO Tips for Advisors

    Advisors are increasingly relying on search engines for inbound leads. Here's how to improve rankings and drive more search engine traffic to your site.
RELATED FAQS
  1. Can you invest in hedge funds?

    Read about what it takes to invest in a hedge fund, and learn how some investors find ways to indirectly capture a hedge ... Read Answer >>
  2. How much of the asset management industry has moved from traditional managers to ...

    Learn about the growth of the hedge fund and alternative asset management industry and the change in regulations, preferences ... Read Answer >>
  3. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  4. Where do most fund managers get their market information?

    Many fund managers, whether they manage a mutual fund, trust fund, pension or hedge fund, have access to resources that the ... Read Answer >>
  5. What is the difference between portfolio management and financial planning?

    Understand the difference between financial planning and portfolio management, and learn which financial professionals can ... Read Answer >>
  6. What is the purpose of a hedge fund?

    Find out what a hedge fund is, how it is set up and why it is different than other forms of investment partnerships like ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center