ISDA is aiming to publish shariah-compliant derivatives documents this year. The project is one it has been working toward for some years (DW, 12/8/03) and has required combining derivatives law expertise with knowledge of Islamic law. The trade association is working with the International Islamic Financial Market in Bahrain, which has a body of Islamic scholars representing a broad cross-section of thought.
"We do not have a publication date in mind, it will be some time next year," said Kimberly Summe, general counsel at ISDA. As part of the project, ISDA is also looking at netting legislation and bankruptcy law in countries that may enter derivative transactions once shariah-compliant documents are published. The association will see if there is appetite for adding to bankruptcy law in these countries.
