Make mine a quant developer

There's never been a better time to build models for pricing derivatives.

"Quant developers are becoming more and more an integral part of the business picture," says Joshua Anderson, consultant at recruitment firm Anson McCade. "They are being given yet more responsibility, working with the traders and reporting to the business line and not to IT, giving access to much better bonuses. Interestingly, although this initial change was made primarily to attract high calibre candidates, the business has found distinct benefits in terms of productivity."

At the same time, the exciting (and more lucrative) world of quant analysis is becoming more accessible.

"Candidates increasingly want to move into quantitative analysis positions, and this is increasingly possible," says Anderson. Favoured candidates come equipped with PhDs in maths and can achieve a big boost in earnings - a quant developer typically earns 150k-200k - but quantitative analysts who devise the mathematics behind the models built by quant developers can command between 300k and 500k.

Hedge funds, especially those working with complex credit products, are also looking to hire quant developers with a strong mathematical background, says Dean Looney, head of the credit desk at recruitment agency Huxley Associates.

"An ideal candidate has a math degree and three to four years in front office programming or hardcore technology experience," he says. "These quant developers are needed to produce robust models and programme them."

Some hedge funds are often willing to teach a more junior candidate the business and programming needed for a role if the maths skills are there, Looney says. Schools such as Paris-based Ecole Polytechnique and Imperial College in London have very impressive mathematics and finance masters courses.

Despite the demand for quant developers, pay hasn't change dramatically: "Salaries are increasing just above inflation," says Looney. "Bonuses are big at some banks but not at others - it is variable. "

However, the most money in quant development can be made by working on a contract basis where banks pay more of a premium for good candidates, says Anderson.

"I'm seeing increasing numbers of contractors getting paid 1k and upwards a day," he adds.