Malaysia has emerged as a front-runner in the global Islamic financial services industry, with the state-of-the-art infrastructure and unparalleled government support. With the development of Commodity Murabaha (CM) transactions on Bursa Malaysia under its Bursa Suq Al Sila’, it attempted to snatch away the business of liquidity management by Islamic banks from the London Metal Exchange (LME).
While a one-step forward from the LME CM practice, Bursa Malaysia’s Suq Al Sila’ necessarily represents the case of trading in commodities with complete irrelevance of commodities to the intended outcome, which is no more than exchange of cash between two participating banks………………………………………..Full Article: Source