AZMAT System - www.azmat.com

786 Page-Last-Changed 16-Dec-2009
System - Overview

Risk Management + Dealing Room System

AZMAT System has been specifically designed to increase the productivity of dealers and sales personnel. It is not an Excel Add-in but an enterprise-wide multi-user risk management and front-office dealing room system that is developed entirely in Excel spreadsheet environment. It is designed for use over a network of any number of users and has a 200-page on-line Help manual explaining each and every single command used. It has taken more than eight man-years to develop and the entire system has more than 100 system files. It works in all versions of Excel from 5 up to the latest 12 (MS Office 2007) under Windows on a PC. The users have full access to all Excel commands at all times, so that they can develop their own sophisticated financial models within AZMAT System.

The system contains various Calculation Models and can use both LIVE and manual data and offers a fully protected Rates Environment with audit trail and password controls at various levels. The system is fully operational immediately after installation on your personal computer. It consists of a number of inter-connected yet independent modules:

Basic System Rates Environment and Calculation Environment.

Rates Environment
Calculation Environment - using specified Cash Flows and Yield Curves.

Calculation Models
      Asset Swap; Bonds; Floating Rate Notes; Convertible bonds;
      Warrants - (on Bond, Equity, Currency, Commodity);
      Money Market Instruments - Bills (Discount basis), CDs (Yield basis), FRCDs (Price basis).

Asset Swap Model
Bonds (with Call, Put, Sinking Funds, Partly-paid, Graduated Rate)
Zero coupon bonds and Perpetuals
Floating Rate Notes
Convertible bonds
Bond Warrants; Equity Warrants; Currency Warrants; Commodity Warrants
Treasury Bills (Discount basis)
Fixed Rate Certificates of Deposit - CDs - (Yield basis)
Floating Rate Certificates of Deposits - FRCDs - (Price basis)

Risk Management Risk Management using Cash flow Maps and Principal Maps

Cash flow Maps - based upon J.P. Morgan's RiskMetrics methodology and dataset from the Internet. The dataset consists of Daily and Monthly horizon volatilities and correlations files.
Principal Maps - using J.P. Morgan's RiskMetrics dataset from the Internet.
Principal Maps - using Historic volatilities and correlations files provided by the user.

Business Knowledge
Some of the investment banking and risk management business terms covered in AZMAT System are as follows: cash flows; discount factors; yield; present value; internal rate of return; accrued interest; average life; equivalent life; yield to maturity; redemption yield; duration; modified duration; convexity; simple margin; discounted margin; bonds (with call, put, sinking funds, partly-paid, graduated rate); zero coupon bonds; perpetual; asset swaps; floating rate notes; convertible bonds; bond warrants; equity warrants; money market instruments such as treasury bills, fixed rate certificates of deposit and floating rate certificates of deposit; volatilities; correlations; cash flow maps; and principal maps.

Please note that the Equity Module of AZMAT System is being used by us to offer various Charts services. It is not available under this offer; all other modules of AZMAT System are available for educational or commercial use.

Overview of AZMAT System

It is an enterprise-wide, multi-user and password-controlled spreadsheet system
It can be used only by authorised people and incorporates hundreds of protected and unprotected files
It is a decision-support front-office dealing-room system
It is also a risk management system that can produce up to the minute detailed risk management reports.
It has a 200-page on-line Help file
It automatically handles errors, no matter how inexperienced the user is.
It can update itself automatically, under certain conditions
Some 'dynamic programming' techniques are used in AZMAT System. At various points AZMAT System writes programming code itself as required and then executes it. Similarly, some parts of it (risk management in particular) are 'self-maintaining'; program detects changes in external database files and then updates AZMAT System files automatically.
It incorporates various techniques developed by the author over 17 years’ IT work experience
It contains the essence of knowledge and experience obtained while developing 32 financial systems

AZMAT System is a truly 'open' system; it can use input data from any file which can be opened in Excel and the results can be placed anywhere directly into any file of user's choice. Thus enabling users to develop their own sophisticated financial models which can be used with any spreadsheet on any personal computer.

Risk Management modules provide on-demand detailed reports of a company's trading position and risk exposure from different points of view (by currency, book, trader, division, classification category and the entire Company). The reports are produced by using different methodologies and by using volatility and correlation data over different time horizons.

The system is fully operational immediately after installation and is designed for use by the international investment banks and other financial institutions operating world-wide in the financial markets of New York, London, Tokyo, Hong Kong, Frankfurt and many other cities in Europe, Asia and the Far East.

System Requirements for AZMAT System

AZMAT System has been specifically designed to work in Microsoft Excel spreadsheet environment under the Windows operating system. It has been tested under Microsoft Office 2007 (Excel version 12) under Windows XP, Microsoft Office 2003 and 2002 under Windows XP, and all other versions of Excel back to version 5 under Windows 98, 95 and Windows 3.11. It is an enterprise-wide multi-user system designed for use over a network of any number of users.
AZMAT System requires Microsoft Excel and the appropriate version of Windows already installed on a Personal Computer with a Pentium or equivalent processor, with at least 64 MB RAM.