The International Islamic Financial Market (IIFM), a Bahrain-based standard-setting body, expects to finalise capital market related Sukuk Al Ijarah standard suite of documentation this year. This was announced in a statement after IIFM’s 40th board of directors meeting convened in the Dubai offices of Standard Chartered Bank.
The meeting was attended by representatives from IIFM’s founding members – the Central Bank of Bahrain, Bank Indonesia, Autoriti Monetari Brunei Darussalam, Labuan Financial Services Authority and the Islamic Development Bank – in addition to representatives from leading financial institutions on the board.
IIFM has so far published standards catering to liquidity management, hedging, margin maintenance and trade finance participation benefiting the users with significant cost reductions, ease of execution and greater transparency resulting in an increase in transactional volumes.
IIFM has commenced translation work on its standards and is expected to come out with French versions by early 2020 to cater for French language jurisdictions. The organisation also intends to translate its standards into Bahasa Indonesia in future.
IIFM is also looking to develop training material for its standards in collaboration with consultants and training institutes to offer technically oriented workshops to the users.
During 2019, IIFM will hold an industry consultation meeting to assess the requirement for standardising Islamic syndicated finance documentation. The meeting will possibly be organised in collaboration with a relevant international body.
Also, this year, IIFM in co-ordination with its hedging standards joint partner ISDA will carry out market consultation to assess requirements for additional Islamic hedging products, smart contracts and other related matters which can eventually lead to additional joint standards in the future.