In a broad sense, financial engineering refers to all technical development that uses engineering means to solve financial problems, including not only financial product design, but also financial product pricing, trading strategy design, financial risk management and other aspects.
Main work:
1, the creation of new financial instruments, such as the creation of the first zero-coupon bond and the first swap contract;
2. Development and application of existing tools, such as applying futures trading to new fields and developing a large number of options and swaps;
3. Combine the existing financial tools and means with combinatorial decomposition technology to compound new financial products, such as forward swaps and futures options, and build a new financial structure.
Extended data:
Domestic thinking
1. Accelerate the reform of the financial system and encourage financial institutions to innovate.
Further accelerate the pace of commercialization reform of financial institutions, accelerate the introduction of foreign-funded financial institutions, and promote competition among financial institutions. At the same time, it is necessary to establish the innovation mechanism of China's financial institutions, vigorously develop financial projects and improve the level of financial services.
2. Strengthen the construction of information infrastructure, introduce financial engineering theory and technology, and cultivate financial engineering talents.
Financial engineering can eliminate information asymmetry, reduce transaction costs and improve financial efficiency. Efforts should be made to promote the informatization process of the national economy, especially the information network construction of enterprises, improve the domestic clearing transaction system, speed up the electronic process, reduce the time lag of financial transactions, increase the liquidity of the market, and lay a solid hardware foundation for the development of financial engineering.
3. Financial engineering can change the organizational structure and management quality of financial institutions.
Financial engineering promotes financial institutions to form a financial organization model and governance structure that meets the requirements of modern market economic system. In terms of management, financial institutions can carry out asset-liability management and risk management according to their own needs, and the decision-making bodies and executive bodies are increasingly integrated, and the decision-making benefits are enhanced.
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