Difference between revisions of "Islamic Derivatives"

Latest revision as of 11:35, 30 May 2013

Islamic law requires that in a contract is about a proper object not per se a right to sell or buy (option). In a sale contract only delivery (Salam) or payment (Bay Muajjal) can be postponed but not both like with a future or forward.

Due to these various restrictions Islamic Derivatives are difficult to develop and controversely discussed. The restrictive view gain more prominence after the financial crisis.

See also: Profit Rate Swap, Tahawut, Arbun, Forex Swap

References

• The Ta’Hawwut Master Agreement - Explanations by Norton Rose
• Sharia compliant hedging is finally, actually here from FT Alphaville
• Derivative Instruments and Islamic Finance: Some Thoughts for a Reconsideration by Bacha, Obiyathulla I.
• Islamic Financial Engineering and Methodology In Achieving Therapeutic Process of Global Financial System by Alsayyed, Nidal
• DERIVATIVES AND ISLAMIC FINANCE by Muhammad Ayub
• The Arboon Sale - A Shariah Compliant Alternative to Selling Short with Borrowed Securities by Sheikh Yusuf DeLorenzo
• Sharia-compliant structured products by BNP Paribas
• Developmental Perspectives on Financial Innovation in Forward and Futures Derivatives by Osama Abdelwahab
• Shariah Compliant Profit Rate Swap
• Developments of Islamic Swaps in Malaysia Azmi and Associates
• ISLAMIC DERIVATIVES SOLUTIONS: METHODOLOGY, ISSUES AND PRODUCT STRUCTURING WITH SPECIAL REFERENCE TO PROFIT RATE SWAP AND FORWARD FOREX Presentation by Sheikh Daud Bakar
• Deutsche Bank White Paper regarding Waad
• Critic towards the structured Waad by Sheikh DeLorenzo
• Derivatives in Islamic Finance by Andreas Jobst
• Islamic Hedging: Gambling or Risk Management? by Saadiah Mohamad, Ali Tabatabaei
• The Islamic Perspective on Derivatives by Dr Mohammed Elgari
• On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies by M. Shahid Ebrahima, Shafiqur Rahman
• A Review of Forward, Futures, and Options From The Shariah Perspective. “From Complexity to Simplicity” by Nuradli Ridzwan Shah Mohd Dali
• Derivatives in Islamic Finance by Dr. Sherin Kunhibava