Financial engineering: Information technology and its place in the new finance
|Title||Financial engineering: Information technology and its place in the new finance|
|Publication Type||Journal Article|
|Year of Publication||1996|
|Authors||Marshall, J. F., and M. P. Dorigan|
|Secondary Title||Technology in society|
Not unlike natural sciences, finance has passed through stages of description and analysis and has arrived at the engineering stage. This transformation has been traumatic for some, created challenges for others, and provided a wealth of opportunities for participants in the financial services industry. This article attempts to provide a sense of the past, present, and future of financial engineering for the benefit of those new to the field. It is, in part, the uncertainty of the future that makes financial engineering such an interesting subject. Yet it is certain that issues of public policy will be raised about the role of financial engineering in the markets. Informed decisions will require an understanding of the evolution of the field, the role of technology in that evolution and knowledge of the challenges that technology poses for public policy makers. Ultimately, policy must be driven by the economic realities of the new finance embodied in the financial engineering field.