Bahraini regulators are for the first time endorsing a derivatives market started in Malaysia to hedge movements in Islamic borrowing costs, removing an obstacle to growth in the US$1 trillion industry.

The International Islamic Financial Market in Manama will issue a global standard on so-called profit-rate swaps in the first quarter, backing an effort by some Malaysian lenders who introduced the product as early as 2004. The contracts, the syariah-compliant equivalent of an interest-rate swap, will make the market more efficient, Ijlal Alvi, chief executive officer of the standardisation body, said……………………………………Full Article: Source