I am deeply honored to have been elected as the 16th President of the Japanese Association of Financial Econometrics and Engineering (JAFEE). In extending my respect to all those who have dedicated their efforts to the advancement of JAFEE, I am personally committed to exerting my utmost efforts for the continued development of the association.

JAFEE has played a vital role as a significant bridge, connecting academic research with practical applications in the fields of quantitative and mathematical finance, as well as financial engineering in Japan. It serves as a convergence point for a diverse range of specialized fields, including economics, statistics, mathematics, and engineering. This intersection provides an environment where perspectives from various knowledge domains intersect, fostering the continuous emergence of new insights. In recent times, cutting-edge technologies, including artificial intelligence (AI) and blockchain, have substantially influenced the financial sector. Given these circumstances, scholarly investigations scrutinizing financial markets through advanced machine learning methods and simulation techniques have garnered considerable attention, with numerous findings showcased at JAFEE conferences. The trend indicates a foreseeable increase in analyses that not only adhere to conventional methodologies but also leverage the distinctive attributes of emerging technologies and theories.

JAFEE, established in April 1993, is now reaching a significant milestone as it celebrates its 30th anniversary in the fiscal year 2023. Over the past three decades, JAFEE has consistently expanded, confronting challenges stemming from various events in and around Japan, such as the economic bubble burst, the Asian currency crisis, subprime mortgage issues, the Lehman Shock, and the ongoing COVID-19 crisis. These events, which significantly impacted financial markets, have become central themes in the society's activities, fostering dynamic discussions. In this way, JAFEE has continued to grow, addressing the challenges of its time, learning from past events, and responding flexibly to future changes.

In the realm of international collaboration, the JAFEE-Columbia International Conference, initiated in 1997 in collaboration with Columbia University in the United States, has been a cornerstone. Presently, we continue to collaborate with esteemed institutions such as the National University of Singapore (NUS) and the Korean Association of Financial Engineering (KAFE) to organize international symposiums. Moving forward, our aim is to strengthen these international and interdisciplinary collaborations. This aligns with the association's core objective, as outlined in Article 3 of the Articles of Incorporation: "To explore the empirical domain associated with financial asset pricing and real-world financial decision-making in the broadest sense, and to facilitate open and uninhibited exchanges of opinions, information, and research findings among researchers and analysts spanning academia, industry, and government within this field. Through these collaborative efforts, we aim to further develop this area as an academic field and elevate it to international standards (originally in Japanese)."

Throughout my two-year tenure, with the cooperation of the directors, auditors, and delegates, and together with all members, I will strive for further development, growth, and further advancement of the association, aiming to be a central player in the field of econometrics and finance in Japan and in the world.

Thank you very much for your cooperation.

Yuji Yamada
JAFEE President
August 28, 2023
Japanese Association of Financial Econometrics and Engineering (JAFEE)