About Us

NM FinTech LTD. is the bridge between the academia and the industry to make available the advanced financial theories at your fingertips, covering classical models, latest publications as well as active research topics. We combine hundreds of top refereed papers and decades of industrial experience in leading financial institutions to create a library of the state-of-the-art financial analytics. Based on that, we build an innovative research infrastructure for quantitative wealth management, quantitative trading and risk management. The founding team members are renowned professors and PhDs from top universities with real world financial experience.

Although there are many (types of) trading strategies in the Street, to name a few, technical analysis, regression model, event driven, fundamental analysis, volatility trading, random guess, only details are different for practitioners. We don’t think we are smarter (or luckier) than everyone out there if we tread the same path. We want to do something different. We are scientists, right? We read a lot of academia publications. But we never see many of them applied in trading (Markowitz, Fama-French, factor model, cointegration and etc. being the most notable exceptions). There are papers on trading strategies and wealth management being published incessantly in a large quantity. It is not easy to publish a paper (esp. in the top tier journals). The trading ideas published in top academic journals are years of work (sometimes lifetime work) from experts in the field. Wall Street traders seldom borrow ideas from them. Or, it takes very long time to do so. Prof. Markowitz published his portfolio optimization theory in 1952, but he didn’t get the Nobel Prize until 1990. Industrial adaptation of academic ideas is very slow. Reasons are: most traders don’t have a Ph.D. to understand the papers; even if they do, most of them don’t have the time to reproduce the results; even if they do, almost all of them won’t bother to do it because it is too much work to do the programming to verify if an idea actually works for real.

AlgoQuant, built on top of NM DEV, is a large collection of quantitative finance models and algorithms from academic papers. We survey and read a lot of journal papers and select those we think useful (esp. to our own trading). We do all the heavy work for the world: re-derive the mathematics to make sure that they are correct (often with typos and mistakes in the papers) and that we understand it, get the data and do the cleaning, code up algorithms to reproduce the paper for verification, run the trading strategy on our data set to see if it is profitable. Over the last decade, we have collected a large number of useful algorithms in many areas: portfolio optimization, trend following, mean reversion, market making, etc. To host these strategies, we have developed a framework for data cleaning, simulation, back testing, performance/risk analysis and reporting. This framework together with a collection of quantitative trading models is AlgoQuant.

Today, NM FinTech has added a few more products: NM Risk Management System, a database of factor values and alternative data, fund and ETF ranking system. We continue to provide our customers with the latest quantitative trading tools so that they are not bogged down to the boring and complex technical details of mathematics and programming. They can focus on the interesting and most important task in their job: coming up with good insights about the financial market, hence innovative trading strategies. We handle the technicalities for them.

University of Chicago