Natixis Foundation for Quantitative Research
Founded in 2006, Natixis Foundation for Quantitative Research acts as a driving force to encourage research in the broad field of mathematical finance: capital markets, actuarial finance and insurance, quantitative asset management, risk management, financial econometrics and statistics, derivatives pricing, hedging of complex financial instruments. Natixis Foundation with its Scientific Committee is a major contributor to the development of research in quantitative finance.
Supporting research at the international level
Natixis Foundation for Quantitative Research is currently unique in its focus on mathematical finance and in taking part in the latest developments undertaken by the best university research teams in the world.
Natixis Foundation offers several types of research support:
- PhD and university research grants on subjects directly related to current issues and technical challenges faced by financial institutions,
- Co-sponsor of scientific conferences with top-ranking universities,
- Awards for outstanding contributions:
Louis Bachelier prize: this biennal prize is sponsored by the Foundation and awarded by the French Academy of Sciences jointly with the Société de Mathématiques Appliquées et Industrielles (SMAI),
Prize for best Master’s thesis in quantitative finance: Each year, this prize is awarded to one or several outstanding theses on current challenging issues that banks, insurance companies and asset management firms must address. These theses call for the use of the most sophisticated quantitative finance techniques.
Driving force behind research and innovation at Natixis
Over the last thirty years, quantitative research and financial engineering have become the driving forces behind the financial innovation process. The complexity of financial innovations and the speed of its standardization in competitive markets require the permanent fine-tuning of products and valuation techniques by highly qualified financial engineers.
"Quantitative research is fundamental for Natixis, as research and development is essential for a pharmaceutical company."
Measuring and managing risks
Natixis offering of new financial products is the result of an upstream process of development, modeling, risk calculation and adaptation of technical infrastructures. The aim is to value products and minimize the associated risks before trading begins.
Pricing of financial products, hedging and trading strategies
Financial engineers rely on the latest mathematical and numerical techniques together with the most advanced IT techniques to create and develop mathematical and statistical models in order to:
- Value financial products such as derivative products and structured transactions, as well as asset allocation techniques for dynamic portfolio management,
- Derive optimal hedging strategies to hedge the risks generated by the trading positions of the bank
- Develop trading and arbitrage strategies in some markets.
“Quantitative Research at Natixis is composed of around fifty financial engineers who contribute to the effort of financial innovation and ensure that the bank remains competitive in a market environment that keeps evolving with increased competition.”