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Posts Tagged ‘Bursa Malaysia

Malaysian bourse to launch Islamic platform in June

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Points of Essence:

  • Malaysia’s stock exchange created the Commodity Murabaha House system to facilitate commodity murabaha transactions by Islamic institutions. With  a market worth more than $100b, the platform looks set to accommodate the structure of financing which reflects real economic activities. This is amid the reservations from scholarly institutions on its validity. The Financial24 has the report.

Posted by:mark

Malaysia’s stock exchange will launch in June a platform to allow banks to execute a popular but controversial Islamic contract with a market worth more than $100 billion.

Bursa Malaysia’s Commodity Murabaha House system will enable Islamic institutions to carry out commodity murabaha transactions which are commonly used to structure sharia bonds, financing and derivatives, said Norfadelizan Abdul Rahman, Bursas head of product development for Islamic capital market.

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Written by Suapi Shaffaii

March 10, 2009 at 1:27 pm

Bursa Malaysia eyes Turkey, M.East Islamic mkts

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Points of Essence:

  • Bursa Malaysia is collaborating with the stock exchanges in Turkey and then Middle East to develop their Islamic financial markets. This is in addition to the same initiative done with Korea to develop its electronic trading platform for Islamic commodity trading as well as commodity murabaha instruments. The international collaboration will help fueled Malaysia’s aim to become a global hub for Islamic finance.  Reuters has the report.

KUALA LUMPUR, Nov 19 (Reuters) – Bursa Malaysia, the Malaysian stock market operator, is looking to work with stock exchanges in Turkey and the Middle East to help develop their Islamic financial markets, its CEO said on Wednesday.

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Written by Suapi Shaffaii

November 20, 2008 at 12:02 am

Bursa Malaysia Expects ‘Very Positive’ Response To Commodity Murabahah House Project

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Points of Essence:

  • Bursa Malaysia Bhd had high hopes for its Commodity Murabahah House (CMH) project, due to be launched by first quarter of 2009. CMH will be developed as a spot commodity which use crude palm oil (CPO) as the underlying commodity to facilitate Islamic financing based on the concept of Murabahah.
  • The commodity-based Murabahah transactions would be the first for Malaysia that used CPO-based contract.

By: Ramjit

KUALA LUMPUR, Aug 8 (Bernama) — Bursa Malaysia Bhd is confident of getting a “very positive” response to its Commodity Murabahah House (CMH) project, due to be launched by first quarter of 2009.

The CMH infrastructure will be developed as a spot commodity market that will use crude palm oil (CPO) as the underlying commodity to facilitate Islamic financing based on the concept of Murabahah.

According to Bursa Malaysia head, product development of Islamic capital market, Norfadelizan Abdul Rahman, the commodity-based Murabahah transactions would be the first for Malaysia that used CPO-based contract.

“Demand will be a little bit slow initially, but once the people get use to it, I believe it will pick up very fast,” he told reporters after the half-day workshop organised by the Royal Bank of Scotland on ‘Innovations in Syariah Products’, here Friday.

Norfadelizan said the new infrastructure would serve as the underlying instrument for Islamic finance and capital market products.

As a start, he said, the CPO would be used as a single commodity to support the local ringgit market.

“We have plans to include other commodities as well like metal which is widely used as commodity-based Murabahah transactions in other countries,” he said.

He said the exchange had received enquiries from other countries to participate in the commodity-based Murabahah transactions.

Second Finance Minister, Tan Sri Nor Mohamed Yakcop, had earlier said the project has received strong support from producers who had committed about RM600 million worth of CPO to be used as the underlying commodity to support this initiative.

He was confident the new infrastructure would be further expanded to support multi commodities in meeting demands of the international market.

Source: BERNAMA

Written by Suapi Shaffaii

August 10, 2008 at 1:43 pm