The title of the degree will depend on emphasis, the major differences between programs being the curriculum's distribution between mathematical theory, quantitative techniques and financial applications. The more theoretically oriented degrees are usually termed "Masters in Mathematical Finance" or "Masters in Financial Mathematics" while those oriented toward practice are termed "Masters in Financial Engineering", "Masters in Computational Finance", or sometimes simply "Masters in Finance". "Masters in Quantitative Finance" is the more general degree title, although "MQF" degrees are often less theoretical and more practical. The practice oriented programs are often positioned as professional degrees. Programs are sometimes offered as a Master of Engineering, or as a Master of Operations Research.
Comparison with other qualifications
The program differs from a Master of Science in Finance, and an MBA in finance, in that these degrees aim to produce finance generalists as opposed to "quants", and therefore focus on corporate finance, accounting, equity valuation and portfolio management. The treatment of any common topics—usually "derivatives", financial modeling, and risk management—will be less technical. Entrance requirements are similarly less mathematical. Note that Master of Finance and MSc. in Finance degrees, as distinct from the MSF, may be substantially similar to the MQF. There is some overlap with degrees in actuarial science, and both degrees are occasionally offered by the same department. Nevertheless, the programs are almost always separate and distinct. Specifically, whereas actuarial programs cover risk and uncertainty as applied to pensions, insurance and investments, quantitative finance programs are broader, and prepare graduates for various of the highly numerate roles in finance and for other areas that require "quants". There is similarly overlap with a Master of Financial Economics, although the emphasis is very different. That degree focuses on the underlying economics, and on developing and testing theoretical models, and aims to prepare graduates for research based roles and for doctoral study. The curriculum therefore emphasises coverage of financial theory, and of econometrics, while the treatment of model implementation, while important, is secondary. Entrance requirements are similarly less mathematical. Some Financial Economics degrees are substantially quantitative, and are largely akin to the MQF. For students whose interests in finance are commercial rather than academic, a Masters in Quantitative Finance may be seen as an alternative to a PhD in finance. At the same time though, "Masters in Mathematical Finance" programs are often positioned as providing a basis for doctoral study.
History
The first quantitative finance masters programs in the US were offered by Illinois Institute of Technology in 1990, under Dr. Michael Ong. The NYU-Poly Financial Engineering degree was the second program of its kind. Carnegie Mellon introduced its "Masters of Computational Finance" program in 1994. OGI's Computational Finance Program was the first such program based in a computer science department. Other pioneering programs include those at NYU's Courant Institute, Columbia, Princeton, Cornell, UCLA, DePaul and MIT. Subsequent growth in the number and location of programs has paralleled the growth of financial engineering—with its growing importance across all aspects of the financial services industries—and of risk management as professions. Programs are now widely offered internationally—see links below—and in some cases are available online or via distance education . In a few cases, a quantitative-finance MBA-specialization is offered. More recently undergraduate programs are available, both in the US and internationally.
