Model Risk Management, Equity Derivatives Pricing Model Validation Associate

We are seeking professionals to join the Equities Derivative Pricing Model Validation team in the Budapest office, either at junior or at experienced level.

Morgan Stanley’s Model Risk Management group is part of the Global Firm Risk Management (FRM) department of Morgan Stanley and it has global responsibility for the independent risk control, review and validation of models used by Morgan Stanley. These include pricing models for derivatives in all asset classes, as well as models used for counterparty credit risk (CVA), market risk, credit risk, operational risk, wealth management products, and capital and liquidity stress tests. In addition to traditional methodologies, MRM also reviews AI and ML models, and GenAI solutions. MRM professionals in New York, London, Budapest, Frankfurt, Mumbai and Tokyo work closely with business, capital, risk analytics, risk managers and financial controllers. The Budapest team works closely with other members of the Model Risk Management group across all asset classes globally.

Since 1935, Morgan Stanley is known as a global leader in financial services, always evolving and innovating to better serve our clients and our communities in more than 40 countries around the world.

What you'll do in the role:

• Perform model validation of complex and state-of-the-art pricing models used by the Equities Trading Business used for daily valuation and risk management of trading positions

• Assess if the models are conceptually sound, fit for purpose, whether the model assumptions and limitations are identified and adequately controlled

• Ensure that model testing performed by model developers is appropriate and sufficient and the model documentation is adequate

• Perform independent model testing and ensure that adequate model performance monitoring is performed

• Identify potential model-related risks and escalate to management

• Work closely with model developers, market risk managers and valuation controllers to understand the models and the business context in which the models need to perform appropriately, and provide effective challenges to make sure models are fit for purpose

• Summarize the model validation process and outcome in writing in the model validation report

• Conduct on-demand analyses of model performance and model risks

• Work as part of a global team with colleagues based in London and New York

What you'll bring to the role:

• MSc or PhD in a STEM area or Finance

• Strong quantitative background, familiarity with stochastic calculus

• 2-4 years of experience in a relevant area relating to derivative pricing models

• Experience in Equities pricing models is a plus

• Genuine and broad interest in financial markets

• Internal drive to effectively challenge and improve models with a quantitative and practical mindset

• Clear thinking, good business sense and judgment

• Strong interpersonal and communication skills, proactive and collaborative attitude

• Experience in coding in a high-level language such as Python is a plus

#LI-JL1 #LI-hybrid #BPMM

WHAT YOU CAN EXPECT FROM MORGAN STANLEY:

At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 years.  Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.

To learn more about our offices across the globe, please copy and paste https://www.morganstanley.com/about-us/global-offices​ into your browser.

Certified Persons Regulatory Requirements:
If this role is deemed a Certified role and may require the role holder to hold mandatory regulatory qualifications or the minimum qualifications to meet internal company benchmarks.

Flexible work statement
Interested in flexible working opportunities? Morgan Stanley empowers employees to have greater freedom of choice through flexible working arrangements. Speak to our recruitment team to find out more.

Morgan Stanley is an equal opportunities employer. We work to provide a supportive and inclusive environment where all individuals can maximize their full potential. Our skilled and creative workforce is comprised of individuals drawn from a broad cross section of the global communities in which we operate and who reflect a variety of backgrounds, talents, perspectives, and experiences. Our strong commitment to a culture of inclusion is evident through our constant focus on recruiting, developing, and advancing individuals based on their skills and talents.