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Background

CFE School, the Learning and Education division of Risk Latte Company, has been delivering its signature public course, Certificate in Financial Engineering (CFE) course in five global cities (Hong Kong, Singapore, London, New York and Mumbai) since 2009. A large number of traders, quants, derivatives structuring and sales professionals, risk managers and hedge fund managers and analysts have attended the CFE course and graduated from it.

CFE Examination

CFE School is now launching the Certificate in Financial Engineering(CFE)Examination, a Quantitative Finance certificate examination for global banking and finance professionals and students of engineering, science and Management Studies who want to make a career in the field of finance and banking in a changing world.

CFE Exam shall have two parts:

CFE Level 1
CFE Level 2

All students will have to enroll / register for CFE Level 1 and upon passing the Level 1 Exam, they can progress to Level 2.

CFE is applications oriented Quantitative Finance Examination which focuses on both the knowledge of quant finance and the development of hands-on quantitative modeling skills within the discipline of quantitative finance. The CFE Exam, at both levels, is all about applying the theories of finance and financial economics, applied mathematics, statistics, physics and computer science to solving problems in the areas such as the valuation and risk analysis of financial derivatives, derivatives trading, portfolio management and asset allocation models for investments, valuation of insurance liabilities, algorithmic trading of financial securities and market and credit risk management.

CFE Exam covers the following areas:

Financial & Applied Mathematics
Numerical Methods in Finance
Stochastic Processes for Asset Price Modelling
Financial Derivatives Trading
Understanding Volatility and Correlation
Asset Allocation and Investments
Algorithmic and Quantitative Trading
Market & Credit Risk Management
Insurance Liabilities Valuation
Econometrics and Financial Research

CFE Exam (Level 1 & 2)
Problem Solving & Quantitative Modeling using Excel^TM Spreadsheets.

As Microsoft Excel^TM has been the lingua franca for the CFE course over the past years, many problems in CFE Level 1 and most problems in CFE Level 2 Exam will require extensive usage of Excel spreadsheets. CFE, especially, Level 2 Exam, aims to test a student’s ability to develop advanced quantitative models of finance and solve quant finance problems using Excel spreadsheet.

What is stressed in the CFE Exam is not just the knowledge of Quant Finance but also how it can be applied to real life situations in the Finance and Banking domain and to do that a student needs to have requisite skills, besides just the knowledge. Use of Excel^TM spreadsheets to solve problems in Quant Finance is a manifestation of a large part of those skills.

How the CFE Exam is Organized

There are two levels for the CFE Exam, Level 1 and Level 2. CFE Level 1 is the basic level examination and tests basic to intermediate level knowledge in the area of Quantitative Finance, mostly how it is applied within the domain of Finance, Banking, Asset Management and Investments, Securities Broking and Insurance. CFE Level 2 is an advanced level examination and the qualifying round for the CFE Certificate. Level 2 tests advanced level knowledge and skills in the area of Quantitative Finance and its application in real life situations.

All students will have to register and sit for the CFE Level 1 Exam first. Only if they pass the Level 1 Exam, can they move to Level 2.
CFE Level 1 Exam will be held in May of every year. A student can take the Level 1 Exam online, via the internet or can come to one of the global testing centres (there are five cities where the test would be administered) and take the Exam there.
CFE Level 2 Exam will be held in November of every year. After passing the CFE Level 1 Exam, students can register for the CFE Level 2 Exam. A student will have to come to one of the global testing centres to take the Exam.

CFE Exam Fees and Payment Methods

The fee for CFE Level 1 Exam is US$400 and that for CFE Level 2 Exam is US$1,400. The fee has to be paid into the bank account of Risk Latte Company Limited in Hong Kong via wire transfer or direct payment. No cheques or credit card payments are accepted at the moment.

How to register for the CFE Level 1 Exam?

Anyone can register for the CFE Level 1 exam by filling up the Enrollment form and submitting it to CFE School. Enrollment forms for both levels can be downloaded here. Or you can write to the Director, CFE School at cfeschool@risklatte.com. Only those who pass the Level 1 exam will be invited to enroll for the CFE Level 2 exam.

A student who successfully registers for CFE Level 1 or 2 exam will have to choose a testing centre at the time of enrollment. The choice of testing centre can be changed only once at least 4 months prior to the exam date.

What Course Materials will CFE School provide to a Student?

Students who successfully enroll for the CFE Level 1 Exam will get the following materials from CFE School:

Selected course notes which can be used as reference for Level 1 exam preparation
The Book of Greeks: a condensed and abridged version of quantitative finance course notes that can help a student prepare better for the Level 1 exam
Selected Reading List

Students enrolling for the CFE Level 2 Examination will get the following from CFE School:

Advanced level courrse notes which would aim to push the student up the learning curve;
Advanced level workings of quantitative models on Excel/VBA spreadsheets plus Excel spreadsheets with tutorials and solved problems.
Detailed Reading List

How to Prepare for CFE Exam?

There is no set method for preparation of the CFE exam. Generally, for CFE Level 1 Exam a student will refer to the course notes and The Book of Greeks given by the CFE School plus a list of textbooks and research papers suggested by the CFE School as part of the reading list. However, a student preparing for the Level 1 and 2 Exams should broaden their coverage of reading materials outside what is provided by the CFE School. It is expected that the student should be very well read and his or her understanding of the subject matter should be both deep and wide. For CFE Level 2 Exam, a student should rely on practical knowledge and applications based knowledge as much as possible. At the Level 2 stage of the examination a student’s knowledge and skills should be reflective of those of the professionals who work in top tier global banks, asset management companies, hedge funds and other leading financial institutions. Most importantly, a student taking the CFE Level 2 Exam needs to have advanced level knowledge of Excel^TM and should be proficient in Excel spreadsheet modeling and using Excel^TM for solving problems in Quantitative Finance

CFE Exam Preparation Classes

Students who want to prepare for the CFE Level 1 and Level 2 exam may join CFE Exam preparation classes organized by the CFE School. These classes may help a student acquire superior skills in the areas of advanced quantitative modeling using Excel/VBA, and understanding of advance concepts, theories and models of quantitative finance. Such classes will be conducted in all the five global locations (London, New York, Hong Kong, Singapore and Mumbai).

All students who want to attend these exam preparation classes must first enroll for CFE Level 1 or Level 2 exam as the case may be. For more details on onsite CFE Exam preparation classes please write to cfeschool@risklatte.com Also, please note that attending CFE Exam preparation classes are NO GUARANTEE for passing either CFE Level 1 or Level 2 Exam.

CFE School Alumni

Some of the recent graduates of and currently enrolled students in the CFE course (the old format) have come from the following banks and institutions: