Application And Analysis Of Quant Service In Brokers

Quantitative investment has been frequently discussed recent years, many investment institutions also set up specialized department, like quantitative investment department, financial engineering department, for quantitative investment business. At the same time, we observe financial products with quantitative investment concepts are booming in the market, thus normal investors can indirectly participate in this new investment alternative. Quantitative investment has established its market share in recent years by bringing new trading ideas and enriching investors’ alternatives.The essay focuses on discovering opportunities and ideas for brokers in developing quantitative investment markets. The essay defines "quant service", by its content and sense, and combining broker’s character with quant service, draws the steps for broker to develop this business. The steps are:support for quantitative research, preparation for trading environment, support for management and supplement of valued-add services, these4steps can be divided into12smaller items, subjecting to the services broker may provide, to ensure broker’s quant service covering every procedure during quantitative investment.The essay provides a SWOT analysis which is based on brokers’ vision, tells present situation of quant service, comments that quant service strategy should include five aspects:organization structure, implement condition, expected income, short-term target and long-term target.Next, the article brings a real case which may be considered as a possible applica tion of quant service in practical work.The last part of the article is conclusion. Developing quant service not only make profit by satisfying investment institutions’demand, it would make one broker different from others that grasping a new highly growth business. Furthermore, quant service will improve investment efficiency and make market more stable.