Posted on 03/01/2010 3:32:48 AM PST by TigerLikesRooster
Islamic tahawwut master agreement arrives at last
Author: Joel Clark
Source: Risk magazine | 01 Mar 2010
Categories: Islamic Finance, Derivatives
After 24 drafts and a consultation process lasting three-and-a-half years, the International Swaps and Derivatives Association and the International Islamic Financial Market (IIFM) today unveiled the sharia-compliant tahawwut (hedging) master agreement for Islamic derivatives.
The protracted negotiations to draw up the agreement looked to be moving forward in September 2006, when Isda and the IIFM signed a memorandum of understanding and committed to convene regular meetings of a joint working group to move the project forward. But lengthy discussions between those drafting the document, sharia scholars and market participants have delayed publication until now.
"A major component of the initiative was working with the sharia panel, which includes many different perspectives from the sharia scholar community, to ensure we addressed their concerns in the drafting and structure of the document. That was a very iterative process that took a lot of time on top of the process we always go through of building consensus among our membership," says Robert Pickel, executive vice-chairman of Isda.
(Excerpt) Read more at risk.net ...
P!
Does this mean I can make my house payment in the form of goats and little boys?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.