Derivatives in Islamic Finance : : Examining the Market Risk Management Framework / / Sherif Ayoub.

• Superior document: Title is part of eBook package: De Gruyter Edinburgh University Press Complete eBook-Package 2014-2015
• VerfasserIn: Ayoub, Sherif,
• Place / Publishing House: Edinburgh : : Edinburgh University Press, , [2022]; ©2014
• Year of Publication: 2022
• Language: English
• Series: Edinburgh Guides to Islamic Finance : EGIF
• Physical Description: 1 online resource (272 p.)

An economic and legal analysis of derivative hedging instruments in Islamic financeThe Islamic finance industry faces the challenging task of attempting to reconcile the risk management demands of business entities with the difficulties posed by the seemingly rigid stance taken by some Shari'ah scholars over hedging practices. Offering a fresh perspective, Sherif Ayoub confronts the challenge by reformulating how we might think about the theorisation of economic matters in the Islamic faith. He also considers the associated perceptions of permissibility that have until now been confined to the legal sphere, with a focus on contractual elements.Ayoub sheds light on the way the Islamic finance industry conceptualises the role of financial instruments. Paying particular attention to derivatives in a market risk management framework that adheres to the objectives of Islamic jurisprudence, readers will come to understand the issues surrounding the avoidance of Riba (usury), Gharar (excessive uncertainty) and Maysir (gambling).Key FeaturesScrutinises the rationale and basis of Shari'ah resolutions and standards set by various bodies in the Islamic finance industry prohibiting the use of derivative hedging instruments Uses economic theory and actual market practices to show the benefits of the contemporary risk management framework Introduces new topics that are relevant to the discussion including the conceptualisation of money, gambling, and financial intermediaries

Table of Contents

Frontmatter -- CONTENTS -- ABBREVIATIONS -- PREFACE -- 1 INTRODUCTION -- 2 TRUTH FORMATION IN MUA'AMALAT -- 3 MARKET RISKS AND THEIR MANAGEMENT -- 4 CONVENTIONAL DERIVATIVES: THEORY AND PRACTICE -- 5 DERIVATIVES IN ISLAMIC FINANCE -- 6 PERMISSIBILITY OF THE UNDERLYING VARIABLES AND THE RECOGNITION OF THE CONTRACT -- 7 MAYSIR, HEDGING AND DERIVATIVES -- 8 CONCLUSION -- REFERENCES -- INDEX