Financial engineering, or quantitative finance, lies at the cutting edge of financial markets and drives the most innovative and competitive parts of the global finance business, of which London and New York are the leading centres.

Despite its important place in the financial world, quantitative finance as a science is still in its infancy, and an enormous amount of research is required simply to underpin present developments, let alone those coming over the horizon. 

This report has four objectives:

· To identify the UK financial sector's longer-term requirements for research and skills in the field of financial engineering.
· To assess the UK university system's ability to supply these requirements.
· To make recommendations for a possible themed EPSRC funding programme in the area.
· To explore potential for co-funding of research council initiatives by financial institutions.