MSc Quantitative Financial Economics


Attendance
Full Time
Award
Degree of Master of Science



This Master’s is designed to develop your knowledge and understanding of the economics of quantitative financial economics with an emphasis on financial markets and asset pricing models.

The course provides you with a firm grasp of some of the methods, models and techniques currently used by firms in the financial services sector and beyond. You will take compulsory modules in economics, financial econometrics, financial markets, international finance and risk management and trading.

You will also have the opportunity to study specialist modules, including Financial Markets – a technical module involving the study of financial models that can explain equilibrium asset prices and the term structure of interest rates; and Risk Management and Trading – which includes an introduction to techniques designed to measure market and credit risk and provide you with an insight into how trader behaviour contributes to bubbles and crashes.

Overview

MSc Quantitative Financial Economics is a one year applied training degree designed to develop your knowledge and understanding of the economics of quantitative financial economics with an emphasis on financial markets and asset pricing models.

This course fits into our Applied Training Programme which is designed to provide training in new and vocationally attractive skills in Economics. It is appropriate either for graduates with no economics background who wish to understand how markets work and to develop the analytical skills of an economist, or for graduates in economics who wish to develop specialist expertise without committing to full research training.  This course provides training that places specialist areas in a wider economic context and shows how the insight from economics can improve workplace performance.

You will develop specific skills highly relevant in the workplace.  These include training in the use of statistical and quantitative software packages (e.g. STATA).  The course provides you with a firm grasp of some of the methods, models and techniques currently used by firms in the financial services sector and beyond. As part of the course you will have the opportunity to broaden your econometric skill set, including skills required to undertake your own research on a topic of particular interest to you.

This degree programme will lay the foundations for a career in a wide range of financial professions.

Course Structure

You will take compulsory modules in economics, financial econometrics, financial markets, international finance and risk management and trading. Teaching is provided by members of academic staff, often in a relatively informal learning environment, and programmes may incorporate lectures, seminars, and practical work, including computer lab sessions.

There are specialist modules designed for this programme, including Financial Markets and Risk Management and Trading. Financial Markets is a technical module which involves the study of financial models that can explain equilibrium asset prices and the term structure of interest rates. Risk Management and Trading includes an introduction to techniques designed to measure market and credit risk and provide you with an insight into how trader behaviour contributes to bubbles and crashes. 

There is also the option to take the module Money and Banking in which you will consider the role of money, central banking and monetary policy and gain an insight into the global financial system and challenges it has faced.

Assessment

Assessment will be carried out through combinations of coursework and exams.  You will also write a dissertation on a topic of your choice, supervised individually by an academic from the School.

Course Modules

Students must study the following modules for 160 credits:

Name Code Credits

ECONOMIC CONCEPTS

This module is designed to introduce students to micro and macro economics analysis, and to familiarise students with a wide range of economic tools which can be applied to issues relating to their Applied Training Programme. The module covers, in particular, consumer and producer choice, market equilibrium, market structure, externalities and public goods, the macroeconomics of inflation, unemployment and growth and macroeconomic policy.

ECO-7011A

20

ECONOMICS DISSERTATION (60 CREDITS)

All students taking the ECO MSc degrees in Economics, Environmental Economics, Experimental Economics, Industrial Economics, Finance and Economics, Media Economics, International Business Finance and Economics and International Business, and Economics and International Relations, are required to submit a dissertation. This module prepares students to write a dissertation of a length and technical complexity as specified in their Course Guide, on a topic approved by the Course Director or other authorised person.

ECO-7023X

60

FINANCIAL ECONOMETRICS

This is a module of two halves. The first half introduces some basic econometric techniques, and the problems which arise in their use. The second half applies the skills acquired in the first half to particular problems in financial economics such as the capital asset pricing model, exchange rate forecasting, testing the efficient markets hypothesis, modelling non-constant volatility and estimation of VAR models; Granger-causality testing, and option valuation. With the aid of the specialist econometric software package STATA, theoretical models are estimated and tested using real data.

ECO-7009A

20

FINANCIAL MARKETS

This module provides an introduction to the economics of financial markets. The first part of the module introduces some key concepts, such as: whether markets are efficient, (the Efficient Markets Hypothesis); and the various ways risk can be measured including VaR and variance of return. The module proceeds to cover the theory of consumer choice and then mean-variance portfolio theory; before the analysis of asset pricing models. Such models include: single and multi-factor models of asset returns, the Capital Asset Pricing Model (CAPM), and the Arbitrage Pricing Theory Model (APT). As well as focusing on the theory of these issues, students will learn how to conduct and evaluate statistical tests of these models. In the process students learn how economic theories are formulated and empirically tested. The module is suitable for those interested in a career within the financial sector or those interested in further study in financial economics.

ECO-7012A

20

INTERNATIONAL FINANCE

This module comprises two sections. The first section examines finance from an investor's perspective, highlighting aspects of portfolio diversification and asset pricing. In the second section, we focus on corporate finance, examining corporate governance issues, how operations are funded (capital structure), and how firms return money to shareholders (payout policy). Particular attention is paid to international topics, including how to price assets across segmented markets, and the benefits, or otherwise, of international portfolio diversification.

ECO-7015B

20

RISK MANAGEMENT AND TRADING

The first part of the module begins by introducing concepts such as risk and volatility in financial markets. With the aid of the econometric computer package STATA, theoretical models will be estimated and tested using real data. Students will learn how to calculate risk using daily and high-frequency data. The second part of the module introduces algorithmic trading using Excel VBA. Students will learn the techniques traders use to test the validity of their trading strategies.

ECO-7017B

20

Students will select 20 credits from the following modules:

Name Code Credits

APPLIED ECONOMETRICS

This module builds on the econometric theory of earlier courses: ECO-7000A, ECO-7009A and ECO-7002A. It attempts to place the theoretical ideas of those modules in the context of current applied analysis. The module is divided into five main parts: data issues and distribution theory time series econometrics, estimation of systems of equations, microeconomics, and panel data models. There is an emphasis on the practical application of common estimation techniques, with the specialist econometric software package STATA being used extensively. These skills are assessed in an applied project at the end of the course.

ECO-7001B

20

FINANCIAL MATHEMATICS

This is a technical finance module aimed at students wishing to pursue careers in the financial sector. The module is accredited by the Institute and Faculty of Actuaries (and together with ECO-M021 replaces the CT8 module). The focus will be on valuation and risk analysis of financial products and positions. The module will be highly analytical, with weekly exercises and assessment balancing mathematical problems and practical exercises involving Excel. Topics covered will include: continuous-time stochastic processes, stochastic models for security prices, bonds, term structure of interest rates, futures and forwards, options, hedging and credit risk.

ECO-7013B

20

MONEY AND BANKING

This is a spring semester module focused on the microeconomics of money and banking. It builds on autumn modules ECO-M023 (Banking Econometrics); ECO-M021 (Financial Markets); and ECO-M019 (Economic Concepts); it also compliments ECO-M024 (International Finance). The module provides an overview of the global financial system with an emphasis on the UK and European experiences and markets. There are three main components of the module. First, we examine the role of financial markets, institutions and instruments in the economy, including the determination of interest rates and asset prices. Next, the development of banks, and bank-like institutions, including an analysis of the 'Shadow Banking System' and financial instruments. Finally, the role of the Central Bank in regulation, supervision and prudential management of the financial architecture. Other issues covered include: important models in financial development; issues in financial deregulation; modelling bank runs; exploring systemic risk, financial crisis and contagion; and aspects of financial market efficiency.

ECO-7018B

20

Disclaimer

Whilst the University will make every effort to offer the modules listed, changes may sometimes be made arising from the annual monitoring, review and update of modules and regular (five-yearly) review of course programmes. Where this activity leads to significant (but not minor) changes to programmes and their constituent modules, there will normally be prior consultation of students and others. It is also possible that the University may not be able to offer a module for reasons outside of its control, such as the illness of a member of staff or sabbatical leave. Where this is the case, the University will endeavour to inform students.

Entry Requirements

  • Degree Subject Economics or other relevant subject
  • Degree Classification 2.2 or equivalent

Entry Requirement

Applicants should normally have a good first degree from a recognised higher education institution. The University will also take into account the employment experience of applicants where relevant.

Applicants who have not studied Economics at undergraduate level are expected to have studied relevant maths/statistics modules in their degree, in order to gain admittance to this course. 

It is normal for undergraduate students to apply for entry to postgraduate programmes in their final year of study. Applicants who have not yet been awarded a degree may be offered a place conditional on them attaining a particular class of degree.

Students for whom English is a Foreign language

We welcome applications from students whose first language is not English. To ensure such students benefit from postgraduate study, we require evidence of proficiency in English. Our usual entry requirements are as follows:

  • IELTS: 6.5 (minimum 6.0 in all components)
  • PTE (Pearson): 62 (minimum 55 in all components)

Test dates should be within two years of the course start date.

Other tests, including Cambridge English exams and the Trinity Integrated Skills in English are also accepted by the university. The full list of accepted tests can be found here: Accepted English Language Tests

INTO UEA run pre-sessional courses which can be taken prior to the start of your course. For further information and to see if you qualify please contact intopre-sessional@uea.ac.uk (INTO UEA Norwich)

Special Entry Requirements

The School of Economics runs an intensive course in Mathematics and Statistics for Economists in the fortnight preceding the Masters programme in September. This course is compulsory and incorporates the techniques of calculus and matrix algebra.  The course will run from 12th September 2016 - 23rd September 2016.

Fees and Funding

Fees for the academic year 2016/17 are:

  • UK/EU Students: £7,365
  • International Students: £14,715

NB: Fees listed are inclusive of the compulsory 2-week pre-sessional Mathematics and Statistics for Economists course.

International applicants from outside the EU may need to pay a deposit.

Living Expenses

Approximately £9,135 living expenses will be needed to adequately support yourself.

Scholarships and Funding

A variety of Scholarships may be offered to UK/EU and International students. Scholarships are normally awarded to students on the basis of academic merit and are usually for the duration of the period of study. Please click here for more detailed information about funding for prospective Economics students.

 

How to Apply

Applications for Postgraduate Taught programmes at the University of East Anglia should be made directly to the University.

You can apply online, or by downloading the application form.

Further Information

To request further information & to be kept up to date with news & events please use our online enquiry form.

If you would like to discuss your individual circumstances prior to applying please do contact us:

Postgraduate Admissions Office

Tel: +44 (0)1603 591515
Email: admissions@uea.ac.uk

International candidates are also encouraged to access the International Students section of our website.

    Next Steps

    Need to know more? Take a look at these pages to discover more about Postgraduate opportunities at UEA…

    We can’t wait to hear from you. Just pop any questions about this course into the form below and our enquiries team will answer as soon as they can.

    Admissions enquiries:
    admissions@uea.ac.uk or
    telephone +44 (0)1603 591515