MBRM - MB Risk Management
29 Throgmorton Street
London EC2N 2AT
United Kingdom

Switchboard: +44 20-7628 2007
Support: +44 20-7628 2008

MBRM Technical Support Facilities


Sep 1996

  • Major upgrade launch of MBRM's derivative software package : MBRM UNIVEXOT - Universal Exotics Add-in (ver 7.3)
  • Unique "try before you buy" distribution of software via the internet from MBRM's World Wide Web site "www.mbrm.com"
  • Additional exotic options handled including double barrier options, two touch options and two asset Rainbow options.
  • New analytical and numeric models incorporated for speed and accuracy.
  • Instantaneous prices, full sensitivities and risk management parameters, and new implied volatility function for ALL exotic options handled.
  • Improved Monte Carlo simulation, including variance reduction and differing drift techniques.

Mamdouh Barakat Risk Management (MBRM) are pleased to announce the major upgrade of one of their key software packages, MBRM UNIVEXOT -Universal Exotics Add-in (ver 7.3). This is used by major traders and fund managers world-wide to price, hedge and trade exotic options.

Unique in the derivative software industry, any potential purchaser can download from MBRMís world wide web site "www.mbrm.com" the latest version of any of the software, including the manuals in electronic form. These would be fully functional sale versions of the software, not limited feature trial copies. The users can try out the software for 30 days on their own machines, before they have to make any commitment to buy it. If they decide to buy it, they can pay by credit card or by cheque and the original hard copies of the manuals and a back up copy of the software will be sent to them. If they decide not to buy it, they would simply delete the downloaded files off their machines. Dr. Mamdouh Barakat (founder and Managing Director) states "To protect our rights, when a user first loads our software on their machine, they contact us for a licence number to unlock the software for the next 30 days. If this leads to a purchase, we would issue a second licence number to permanently unlock the software. This approach is very popular with our overseas clients, who can have a working copy of our software within minutes of contacting us."

Exotic options differ from standard options, such as call or put options on stocks, because they have additional terms attached to them, e.g. the right to buy a stock at the lowest market price observed in the next 6 month (this is called a Lookback), or exotic options which lock in a profit even if the market subsequently falls (this is called a Ladder). Exotic options are used for a number of reasons, including to match liabilities and to create tailored risk return profiles. Interestingly, equity fund managers have recently begun using exotic options to offer equity linked bond offerings, where the return of the bond is linked to the performance of one or two equity indices (e.g. S&P and FTSE).

This upgrade is very much demand driven. Dr. Mamdouh Barakat states "We have been in the derivative software business since its earliest years. Our best selling package, MBRM UNIVOPT - Universal Options Add-in, was launched in 1989 to handle plain vanilla American and European style options. Being launched so early on, at a very cost effective price, and also having probably the fastest binomial pricing model available, made it a world beater. With new exotic instruments being launched, our users began to need pricing tools for exotic options, which is why we launched the original MBRM UNIVEXOT in 1992. This used a flexible Monte Carlo engine. However, for risk parameters and implied volatility analysis, users now require a package which can handle exotic options as quickly and easily as our MBRM UNIVOPT can handle standard options. Monte Carlo simulation was just not fast enough. Taken with the demand for analysing new exotic instruments, our latest upgrade has emerged. For extra flexibility, a user can now enter a specified pay off formula for a one or two asset linked exotic, thus considerably increasing the range of exotic options handled. Monte Carlo simulation still has a role to play which is why we have also improved it with a better random number generator, added variance reduction and user definable differing drift techniques."

This upgrade follows fast on the heals of a major upgrade of MBRMís flagship product "MBRM UNIVSWAP - Universal Swap Add-in" version 7. This upgrade was launched two months ago and offers users the ability to construct term structure curves (e.g. zero and swap curves) for all international markets. A key feature of the upgrade is that the curve generation and lookup functions have been redesigned and are now fully written in C++, as opposed to Excel Macros. The new algorithms offer a number of major advantages, including increasing the accuracy of the analytics with arbitrage free pricing, making the software up to 15 times faster and enabling the software to be called from C, C++ and Visual Basic, thus opening up the ability to integrate the swap analytics with an investment houseís front, middle and back office trading and risk management systems. The swap add-in incorporates, at no extra charge, full copies of the other four MBRM add-ins :

        UNIVOPT - Universal Options Add-in
        UNIVYLD - Universal Yield Add-in
        UNIVEXOT - Universal Exotics Add-in
        UNIVZERO - Universal Zero-Curve Add-in

Please see our latest price list (http://www.mbrm.com/pricelist.shtml) for the cost of this module.

For further information, please contact our Sales Team

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