Financial Mathematics MSc

Financial mathematics builds on the application of advanced concepts in modern probability theory to enable market professionals to tackle and systematically resolve a huge range of issues in the areas of pricing, hedging, risk management, and market regulation.

On this course you’ll put theory into practice by developing your numerical and computational skills to implement financial models. These are the skills you’ll need to work for a financial institution.

The course has an emphasis on:

• the modelling of the dynamics of financial assets, both in equity markets and in fixed-income markets
• the pricing and hedging of options and other derivatives
• the quantification and management of financial risk.

The course will give you a balanced mixture of advanced mathematics (including modern probability theory and stochastic calculus), modern finance theory (including models for derivatives, interest rates, foreign exchange, equities, commodities, and credit), and computational technique (GPU-based high-performance computing).

The programme offers six compulsory modules, taken by all, along with three elective modules from which you choose two modules. There are lectures, examinations and coursework in eight modules altogether, including the six compulsory modules. Additionally, all students complete an individual research project on a selected topic in financial mathematics, leading to the submission of a dissertation.

We aim to teach the key ideas in financial asset pricing theory from a modern perspective, using concepts and methods such as pricing kernels, market information filtrations, and martingale techniques. This replaces the more traditional but old-fashioned approach based on the historical development of the subject. At each stage of the course you’ll undertake a critical re-examination of the hypotheses implicit in any financial model, with a view to gaining a clear grasp of both its strengths and its limitations. You’ll learn high-performance computing and the techniques to implement financial models.

Compulsory modules

• Computer Intensive Statistical Methods
• Financial Markets
• Interest Rate Theory
• Option Pricing Theory
• Probability and Stochastics
• Research Methods and Case Studies
• Quantitative Data Analytics
• Dissertation

 Optional modules

• Fundamentals of Machine Learning
• Time Series Modelling

This course can be studied 1 year full-time, starting in September.

You’ll be qualified to pursue a job in a number of different areas of financial modelling and risk management in the financial services industry, with employment prospects in banks, asset management firms, hedge funds, pension funds, insurance and re-insurance companies, exchanges, corporate and sovereign treasuries, financial consultants, financial software developers, financial regulators, financial publishing houses, and companies specialising in the analysis and distribution of financial information and data. There is also a demand in financial institutions for well qualified mathematically literate graduates with higher degrees for positions in the trading, structuring and marketing of financial products.

Find out more about what our Alumni has to say 

• A 2:2 (or above) UK Honours degree, or equivalent internationally recognised qualification, in Mathematics.

Applications from candidates with degrees in Engineering, Economics, Mathematical Biology with Maths, Calculus and Algebra modules with B Grade or above in the modules overall.

Other qualifications with relevant work experience may also be considered.

• IELTS: 6 (min 5.5 in all areas)
• Pearson: 59 (59 in all sub scores)
• BrunELT: 58% (min 55% in all areas)
• TOEFL: 77 (min R18, L17, S20, W17) 

Assessment is by a combination of coursework, examination, and dissertation. Examinations are held in May. The MSc degree is awarded if you reach the necessary overall standard on the taught part of the course and submit a dissertation that is judged to be of the required standard. Specifically, to qualify for the MSc degree, you need to: (a) take examinations in eight modules including the four compulsory modules, (b) attain the minimum grade profile (or better) required for a master’s degree and (c) submit a dissertation of the required standard. However, if you don’t achieve these requirements, you may be eligible to be awarded the Postgraduate Diploma.