Quantitative developers well placed in IT job market

This is borne out by numerous job advertisements. One bank is looking for a senior foreign exchange quant and derivatives developer in London on a total package of 75,000 (€107,000) to 120,000 (€180,000). Another, for an equity derivatives quant developer, offers base pay of 80,000.

Using IT programmes, quantitative developers build a bridge between traders' daily need for pricing and structuring information, and the complex models produced by the front office quantitative staff - the so-called rocket scientists.

Greg Patel, at search firm Norman Broadbent, said the role of quantitative developers lies in interpreting what the rocket scientists are saying: 'They need to look at the mathematical models which are being produced, and replicate those in the bank's computer systems.'

Strong demand for quantitative developers is rooted in two factors: developers play an important role in a number of growth areas, such as credit derivatives; and they require a specific and fairly rare skillset.

Quant developers need to combine good IT knowledge with robust understanding of complex derivative products. Patel said candidates often have one skillset but not the other: 'There are plenty of good technicians, but they haven't gone into derivatives pricing.'

Candidates also often fall down on communication skills and project management. 'They need to communicate ideas between the front office traders and the quants. A lot of technicians can't do this.'

As a result, most quantitative developers combine an IT background, and knowledge of programmes such as C++ and VBA, with advanced degrees in finance. Courses such as the MSc in finance at Imperial College, London University, are popular, said Patel.

Winnie Wong of the search firm McGregor Boyall said base pay for quant developers ranges from 65,000 for junior staff, to 90,000 for more experienced hires. Bonuses vary widely, at anything from 25% to 75%.

However, Wong said some staff may be able to negotiate guaranteed bonuses or a lump sum payment when they sign on.

Quant developers are typically paid substantially less than the front office quants whose ideas they are translating. Patel said the front office quants can earn twice as much as their IT-oriented counterparts.

Russell Clarke, a consultant at the recruitment firm Cresta, said that compared to front office quants, quant developers needed a less sophisticated grasp of risk and pricing issues: "Quant developers are not coming up with the original ideas."

However, the pay differential can be a source of resentment, with some quant developers feeling undervalued. As a result, many aspire to move into the front office.

Clarke said those best equipped to do so are junior staff with a strong maths background. He advises junior developers looking to move into front office roles to work in highly quantitative houses, such as BNP Paribas, Goldman Sachs, and UBS; they will get better exposure.

More senior staff will probably have to make do with their lot: 'If you are an established quant developer it can be hard to move into the front office,' said Clarke.