WORLD - FINANCE - IIFM and ISDA Launch Mubadalatul Arbaah (MA) Profit Rate Swap (PRS) Product Standard

www.isda.org - BAHRAIN, Tuesday, March 27, 2012 – The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association, Inc. (ISDA) are pleased to announce the launch of the ISDA/IIFM Mubadalatul Arbaah (Profit Rate Swap) product standard to be used for Islamic hedging purposes.

The Mubadalatul Arbaah (MA) standard follows on from the “ISDA/IIFM Tahawwut (Hedging) Master Agreement” and provides the industry with a framework for Islamic risk mitigation. The launch of the Tahawwut Master Agreement as the template for Shari’ah-compliant risk management was officially announced at a press conference hosted by Central Bank of Bahrain in March 2010. (source)

BANKING - Bank Indonesia hosts IIFM's 23rd Board Meeting & Industry Seminar

Jakarta, Indonesia - 23 December, 2010 - The 23^rd Board of Directors meeting of the IIFM was hosted last week by Bank Indonesia at their offices in Jakarta. The meeting was attended by senior representatives from Bank Indonesia, Central Bank of Bahrain, , Labuan Financial Services Authority (Malaysia), Ministry of Finance (Brunei Darussalam), Islamic Development Bank, State Bank of Pakistan, Bank Islam Malaysia Berhad, Credit Agricole CIB, Standard Chartered Saadiq and the National Bank of Kuwait (Bahrain).

BANKING - Sharia banks may get hedge funding tool next year

Member countries of the International Islamic Financial Market (IIFM) may soon enjoy a hedging facility to reduce risks of financial transactions, officials say.

The IIFM’s Board of Directors agreed on Monday to implement a hedging facility for the sharia banking industry in the first half of next year amid global currency concerns.

Bank Indonesia’s director for sharia banking, Mulya Siregar, said that IIFM member countries would sign a master agreement, called a tahawwut agreement, to accommodate the hedging facility.

BANKING - Assets of Syaria Banks to Reach Rp92 Trillion - Tahawwut Master Agreement signed with Malaysia, Brunei, Brunei and Kuwait

Director of Syaria Banking, Mulya E. Siregar, said syaria banks’ assets are projected to grow up to Rp92 trillion by the end of the year or a 3.1 percent increase of the total national bank assets. To reach this goal, syaria banks are collaborating with the National Syaria Board to produce a religious edict needed by the industry so they can accelerate product innovations.

To save transaction fees, Syariah banks have signed the Tahawu Agreement with Malaysia, Brunei Darussalam, and Kuwait. With this agreement, syaria banks’ transactions only need to refer to the contract model. Mulia hopes that in 2011, this can boost assets up to Rp130 trillion.

LEGAL - TAHAWWUT MASTER AGREEMENT - ISDA - Islamic derivatives slow to catch on in Gulf states

DUBAI: Islamic derivatives are still struggling to gain traction in the Gulf, six months after the launch of a much-touted over-the-counter contract aimed at creating a standard legal framework for hedging products.

Experts said the contract, known as the Tahawwut Master Agreement, in theory provides Islamic institutions with a simpler template for risk management that has been approved by syariah scholars.