|Major agreement to boost Islamic finance services|
|Monday, 12 April 2010 00:00|
MANAMA: Gulf Daily news:
The Bahrain-based International Islamic Financial Market (IIFM), in collaboration with the International Swaps and Derivatives Association (ISDA), has published the Tahawwut Master Agreement.
The agreement is a framework or governing document and has been welcomed as an essential step in the development of the market for Sharia-compliant hedging transactions.
It is the first step towards bringing a full set of definitions, confirmations, necessary law reforms and other benefits to the Islamic financial services industry over a period of time.
Based on huge interest in the market as well as requests by its members, IIFM is organising a series of industry workshops in various locations to familiarise Islamic finance practitioners with the groundbreaking agreement.
The workshops will provide the participants with an understanding of the significance of the document, its key features and mechanics, and the types of transactions that can be undertaken.
"A tremendous amount of effort has gone into the development of the Tahawwut Master Agreement," said IIFM chief executive officer Ijlal Alvi.
"We now want to ensure that this agreement is used as widely as possible by the industry.
"The workshops will provide Islamic finance professionals with a detailed understanding of the agreement and how they can utilise it in their day-to-day transactions."
The first workshop was held in Bahrain, where more than 25 financial institutions from Bahrain, the GCC region as well as the Central Bank of Bahrain took part.
"The participants strongly recommended that IIFM should organise such events as it is a new market document which requires explanation before the institutions can begin implementing/adopting the Tahawwut Master Agreement across jurisdictions," Mr Alvi added.
More workshops are planned in Abu Dhabi, Dubai and other locations.
|Last Updated on Friday, 09 April 2010 00:28|