in recent years, with the continuous expansion of the securities market, financial derivatives have been continuously introduced, investment strategies and profit models have undergone fundamental changes, and the complexity of investment has been increasing, resulting in corresponding changes in the proportion of investors in the securities market. The proportion of professional investment managers is increasing, and it is accelerating. On the other hand, quantitative hedging investment strategy will become one of the main investment directions of institutional investors because of its low risk and stable income. I. Characteristics and service requirements of quantitative hedging business Quantitative hedging is a business with distinctive business characteristics, high professionalism and high supporting service requirements. Its business characteristics are as follows: (1) High level of specialization in investment. Quantitative hedging business requires managers to have high research and development capabilities in IT technologies such as data mining, strategy development and programmatic trading. According to overseas experience, managers engaged in quantitative hedge investment are all professional institutional investors, with high-end talents from physics, mathematics, statistics, computer and other fields. They need to have the ability to develop quantitative investment models and continuous model optimization, and have a certain entry threshold for the industry. Branches must also have certain identification ability in identifying and supporting quantitative hedge managers, so as to avoid paying a lot of energy and having little effect. (2) The quantitative hedging business has a natural geographical distribution. Similar to the layout of Public Offering of Fund company, most of the main quantitative hedging managers are concentrated in several active financial markets such as Shanghai, Beijing and Shenzhen, which is consistent with the uneven development of quantitative hedging business in various regions of the company. (3) The product risk is relatively low. At present, most quantitative hedging products in the market are market-neutral strategies, which hedge the systemic risks in the securities market. Compared with traditional directional equity products, they have great advantages in controlling product withdrawal and obtaining stable income. With the continuous improvement of short selling mechanism, hedging strategies will be gradually enriched, such as statistical arbitrage, long-short strategy, paired trading and so on. (4) There should be a special support team for business landing. According to the practical experience of promoting quantitative hedging business in recent years, there are many technical problems that need to be coordinated by the sales department at the business execution level. Each sales department must be equipped with professional business teams to support and respond quickly and solve the existing problems. The actual situation is that most business departments do not have enough manpower, financial resources and material resources to equip professional support teams. According to the above characteristics of quantitative hedging business, higher comprehensive service requirements are put forward for brokers: (1) High requirements for IT systems. Quantitative hedging business model has extremely high requirements for IT systems, on the one hand, it is reflected in the stable and efficient response speed of trading system and market data, on the other hand, it is reflected in the ease of system integration and development. (B) High demand for strategic research and development. With the continuous introduction of financial innovation tools, quantitative hedge managers can achieve stable and excellent investment performance only if they have the ability of continuous strategy development and strategy optimization, which requires our company to provide strong support such as strategy research and strategy exchange. (3) High requirements for product design and distribution. The only way to quantify the development of hedging business is to achieve economies of scale and expand productivity in a productized mode. Investment managers need brokers to provide SPV design (such as trust, public offering, asset management and other legal structure arrangements), product structure design, risk control, back-office operation and marketing organization, etc., which matches the professional ability of securities companies in product design, unified marketing organization ability and integration of corporate headquarters resources. Second, the development status of quantitative hedging business

(I) The professional level of investment managers or direct investors is uneven

At present, quantitative hedge investment managers in the market are roughly divided into three categories according to their professional level:

The first category: managers or investors with extremely high professional level, with many years of investment experience, self-developed quantitative trading system, special strategy research team, firm past performance and continuity. Such managers are both self-taught and joined by returnees, and experienced managers from mature markets are gradually increasing;

category ii: managers or investors in the process of growth. Such managers have good investment experience and past performance in the domestic securities market, strong learning ability and strong adaptability, and are becoming a new force in quantitative hedging business;

the third category: managers or direct investors who lack professional ability, only desire and have no professional support, and passively rely on the technical platform to operate, have little or no knowledge of quantitative hedging business, and passively invest according to the signals sent by the strategic trading system. It is expected that such managers (investors) will be unable to cope with market changes and will soon leave the market because they are helpless.

(2) judging from the service support provided by brokers or business departments, the professional level and service support ability are also uneven.

It is mainly divided into three categories:

The first category: supported by professional teams, with systematic technical support, strategic support and service support;

the second category: securities firms that are in the initial stage, but they may be late-movers, with accurate positioning and integrated resources, and become the main service organizations in the quantitative hedging market;

category iii: inability to support quantitative hedging business. There is neither technical support nor professional service team, let alone strategic support. Business development is in a state of self-destruction, and business is also in great fluctuation.