Islam's Shariah law bans interest on loans, which prevents Muslim investors from trading in derivatives.
"Bloomberg" quotes the International Swaps and Derivatives Association Inc. (ISDA) as saying that global standards for Islamic derivatives contracts, derived from Sharia law, may be published as soon as December. The derivatives will be based on stocks, bonds, mortgages and other loans, currencies, and commodities.
Sharia law bans interest on loans, which prevents Muslim investors from trading in derivatives. Shariah scholars will help in the establishment of the market standards.
ISDA chairman Eraj Shirvani said that the first version of their framework will focus on swaps for profit-rate and currency transactions.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009