Islamic finance specialists gave a cautious welcome this week to the new Isda/IIFM Tahawwut (Hedging) Master Agreement for Islamic derivatives, revealed on Monday at a press conference in Bahrain.
The long-awaited document, prepared by the International Swaps and Derivatives Association and the International Islamic Financial Market, is a standardised form for Islamic derivatives transactions.
Market participants can tailor or amend the agreement as they wish, but those who use it may be able to save time and money by not having to draw up the extensive documentation required for...