International Association Of Financial Engineers - IAFE

AAA

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.

INVESTOPEDIA EXPLAINS '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. Accredited Advisor In Insurance ...

    An advanced professional designation earned by insurance producers ...
  2. Financial Engineering

    The use of mathematical techniques to solve financial problems. ...
  3. Financial Plan

    A comprehensive evaluation of an investor's current and future ...
  4. Paraplanning

    A relatively new position within the financial planning industry ...
  5. Financial Planner

    A qualified investment professional who helps individuals and ...
  6. Quantitative Analysis

    A business or financial analysis technique that seeks to understand ...
RELATED FAQS
  1. How can an investment banker switch to a career in corporate finance?

    It's pretty easy for an investment banker to switch to a career in corporate finance. The career skills are easily transferable, ... Read Full Answer >>
  2. What are the best MBA programs for corporate finance?

    Opinions vary based on which publications you consult, but the best MBA programs for a career in corporate finance are at ... Read Full Answer >>
  3. How stressful is the typical corporate finance job?

    In the financial industry, corporate finance jobs are often contrasted with investment banking jobs. The traditional view ... Read Full Answer >>
  4. What should I study in school to prepare for a career in corporate finance?

    Depending on which area you want to specialize in, corporate finance can be one of the most competitive fields in business. ... Read Full Answer >>
  5. What are the differences between a Chartered Financial Analyst (CFA) and a Certified ...

    The differences between a Chartered Financial Analyst (CFA) and a Certified Financial Planner (CFP) are many, but comes down ... Read Full Answer >>
  6. What types of positions might a Chartered Financial Analyst (CFA) hold?

    The types of positions that a Chartered Financial Analyst (CFA) is likely to hold include any position that deals with large ... Read Full Answer >>
Related Articles
  1. Professionals

    Financial Career Options For Professionals

    Find out if spreading your wings to try a new career will make you soar or fall flat.
  2. Active Trading

    Qualitative Analysis: What Makes A Company Great?

    To understand the qualities that make for a great company, investors must dig deep into "soft" metrics.
  3. Professionals

    Financial Professionals: The Benefits Of Joining An Association

    Make a name for yourself among your industry peers by joining a professional association.
  4. Professionals

    Why Women Choose Women for Financial Advice

    Women often prefer female financial advisors because client and advisor can relate to each other on a variety of levels.
  5. Mutual Funds & ETFs

    The Daily Routine Of A Hedge Fund Manager

    What does a hedge fund manager's day really look like? Investopedia provides an inside look at the routine.
  6. Brokers

    A Day in the Life of a Financial Advisor

    Financial advisors do a lot more than just manage portfolios, including prospecting, marketing, client servicing, compliance and administration.
  7. Professionals

    Finding & Retaining High-Net-Worth Clients

    Finding high-net-worth clients is just the beginning of the process of advising such individuals. Once you've found them, you need to find ways to retain them.
  8. Professionals

    What Does an Auditor Do?

    An auditor ensures that organizations maintain accurate and honest financial records.
  9. Entrepreneurship

    The 10 Richest Women In Finance

    Who are the top 10 women in the financial industry?
  10. Professionals

    What Does a Broker Do?

    In the investment world, broker is a term used to refer to an individual or entity that helps facilitate trading in financial securities.

You May Also Like

Hot Definitions
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  2. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  3. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  4. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  5. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  6. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!