UP to €4.7 million is to be invested in a new financial mathematics research centre by Science Foundation Ireland (SFI), the Government body responsible for funding core industrial and other research.
The financial mathematics and computation cluster (FMC) will bring together experts in financial mathematics, financial economics and computer science.
SFI said it will concentrate initially on the development of theory and methods for managing assets.
Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, said the Government believes that a strong focus on this area would help sustain the dynamic of our internationally traded financial services sector.
At this point Dublin’s International Financial Services Centre (IFSC) is responsible for €22 billion a year in services exports, and is a critical part of the Irish economy.
Giving research in this area such prominence highlights commitment to ensuring this area retains the dynamism it has developed over the years, she said.
It gets rid of the idea also that “scientific research and investment is primarily theoretical and somewhat removed from the day-to-day economic activity of our country,” she said.
Heading the FMC is Professor Anthony Brabazon of University College Dublin (UCD).
His job will be to direct research into thee key areas involving risk management, information and market liquidity.
Several Irish institutions will feature in the research including Dublin City University and the University of Ulster.
Overseas, a number of US institutions including the Federal Reserve Bank of New York and the Universities of California and Los Angeles will be involved while in Europe the Technical University of Kaiserslautern, Germany, has also agreed to join the project.
Industry partners include Pioneer Investments, Ryan Capital Ltd and The Institute of Bankers in Ireland.
Professor Anthony Brabazon, also stressed the importance of the new project the Irish financial services industry.
“Firms in the IFSC are facing ever increasing pressures from competitors in other jurisdictions so we need to ‘up our game’ if we want to continue to grow employment in this sector,” he said.
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