Bespoke solutions for an Islamic CSA
Islamic derivatives users are still getting to grips with a new sharia-compliant master agreement, but some argue the market will be stunted without an accompanying collateral document. Lawyers say that is some way off, so they’re cooking up bespoke contracts to fill the gap. Duncan Wood reports
Since March, Islamic derivatives users have for the first time been able to use a contract designed for use with all the market’s most popular products and in all the world’s 56 or so different Islamic jurisdictions. It’s an impressive feat of legal and religious engineering, says Bernard Barbour, director of legal and sharia affairs at QInvest, a Doha, Qatar-based investment bank, who compares it to a sleek sports car. There’s just one problem: “It has no fuel,” he complains.
Barbour is
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