IIFM Shari’ah board resolution reaffirms close-out netting mechanism in the events of early termination in the TMA

IIFM Shari’ah board resolution reaffirms close-out netting mechanism in the events of early termination in the TMA

Manama, Kingdom of Bahrain - The Shari’ah Board of the International Islamic Financial Market (IIFM) held its meeting on 11th October 2023 in which a resolution was made to reaffirm the mechanism for ‘Close-Out Netting Amount’ in the Events of an Early Termination as set out in the ISDA/IIFM Tahawwut (Hedging) Master Agreement.

The resolution is issued after the comprehensive assessment of the Shari’ah meeting paper prepared by IIFM Secretariat. After extensive discussion and comprehensive deliberation by the esteemed Scholars, the IIFM Shari‘ah Board resolves that there is no need to make any amendment to the text of the ISDA/IIFM Tahawwut Master Agreement (TMA), therefore, it has confirmed and maintained the existing approval of the TMA Close-Out Netting Amount in the Events of an Early Termination by the IIFM Shari’ah Board decision which was resolved in March 2010.

On this occasion, IIFM’s Chairman Mr. Khalid Hamad Al-Hamad stated: “IIFM has a robust Shari’ah review process, engaging some of the most experienced and prominent Shari’ah scholars in the industry. I am pleased to note that the recent Shari’ah review of the ISDA/IIFM Tahawwut Master Agreement has found it to be suitable and not needing an update. It is worth mentioning that TMA was