2027 Institutional Equity Derivatives & Trading Co-Op (New York)

Morgan Stanley Campus•New York, NY

2d•Onsite

About The Position

Morgan Stanley’s Institutional Equity Division (IED) is a world leader in the origination, distribution and trading of equity, equity-linked and equity-derivative securities. The Division services a global Institutional client base, providing clients with innovative product solutions that help to generate alpha within their portfolios. This co-op program is for those interested in quantitative, trading, or structuring/content roles within Equities. Co-Ops will spend approximately 6 months fully immersed on a desk within IED. Certain roles within the Institutional Equity Division require a more technical skillset. Derivatives and Trading is responsible for the generation and facilitation of liquidity, as well as innovative product and trading solutions across a variety of Derivative products, including Equity Options (both exchange- listed and over the counter), Securitized Derivatives, and Convertible Bonds. Products and services are delivered across a full range of distribution channels, including our corporate, retail, and institutional clients. The Sales-Trading team covers Hedge Funds (Equity long/short, Macro, Volatility focused funds) & Asset Managers (Mutual Funds, Pensions, Endowments). Responsible for the distribution of derivative ideas and research, as well as pricing and execution of a suite of products including: listed and OTC options, futures, customized equity basket swaps, exotic options, dispersion, variance swaps, and ETFs. Away from flow oriented roles, select roles are focused on creating content via positioning models, custom baskets, and option structures which is then distributed to clients. The index desk is part of the Equity Derivatives Trading and focuses primarily on trading volatility of major U.S. equity indices (e.g., SPX, NDX, RUT), as well as emerging markets (e.g., EEM, EWZ, etc.) and macro ETFs (HYG, TLT, etc.). Major products include listed and OTC options, variance swaps and volatility swaps, and VIX-related products. The SNO (Single Name Option) desk trades vanilla options, both listed and OTC, on single name equities (AAPL, AMZN, TSLA) and sector ETFs. The Exotics desk is part of Equity Derivatives Trading and focuses on the trading, hedging, and pricing of exotic equity-linked derivatives. Exotic options have non-standard features when compared to traditional “vanilla” options. Examples include volatility target options, knock-out options, and conditional variance swaps. Clients include large institutional investors looking for bespoke hedging solutions and opportunities for leverage, and retail investors looking for equity-linked yield products in the form of structured notes. The Exotics desk is responsible for warehousing and efficiently hedging the complex risk using tradable instruments. The Exotics desk is further broken down into sub-teams (pods) based on the underlier of the derivative traded (stocks, indices, and custom baskets/QIS indices). Interns on our desk will spend time with members on each pod. The ETF team focuses on market-making across both domestic and international ETFs. There is a focus on generating alpha producing strategies across pricing models for domestic and international ETFs, futures, leveraged ETF and ETP dynamics, index carry arbitrage strategies and more opportunistic thematic trading.

Requirements

Availability to work full-time, in-person from January - June 2027 from role location
Pursuing an undergraduate degree with a technical proficiency in areas such as Mathematics, Statistics, Physics, Computer Science, and Engineering, with a graduation date after December 2027
Minimum 3.0 GPA
Comfortable applying statistical analysis and deriving value from data
Enjoy solving complex problems that require deep analytical reasoning and quantitative analysis
Familiar with coding languages such as Python, Q, R, SQL, or VB
Strong written and verbal communication skills
Candidate is collaborative, a quick learner, adaptable, versatile, a multi-tasker and possesses a strong work ethic
Keen interest in finance and markets

Nice To Haves

No prior knowledge of finance or trading is required

Responsibilities

Generation and facilitation of liquidity
Developing innovative product and trading solutions across Derivative products
Distribution of derivative ideas and research
Pricing and execution of a suite of products including: listed and OTC options, futures, customized equity basket swaps, exotic options, dispersion, variance swaps, and ETFs
Creating content via positioning models, custom baskets, and option structures
Trading volatility of major U.S. equity indices, emerging markets, and macro ETFs
Trading vanilla options, both listed and OTC, on single name equities and sector ETFs
Trading, hedging, and pricing of exotic equity-linked derivatives
Warehousing and efficiently hedging complex risk using tradable instruments
Market-making across both domestic and international ETFs
Generating alpha producing strategies across pricing models for domestic and international ETFs, futures, leveraged ETF and ETP dynamics, index carry arbitrage strategies and opportunistic thematic trading