Gharar in forward and futures contracts?
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| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 |
| date | 2015-03-23 08:46:38 |
| format | Restricted Document |
| id | 11644 |
| institution | UniSZA |
| internalnotes | Abdulkader, T. (2005). “Risk Management and Derivatives” in Abdul Kader Thomas, Stella Cox and Bryan Kraty (ed.), Structuring Islamic Financial Transactions. United Kingdom: Euromoney Books. ‘Abdul al-Aziz, M.‘A. (2005). al-Qawa’id al-Fiqhiyyah. Kaherah: Dar al-Hadis. Ahmad Hidayat, B. (2004). “The Significance of Prohibition of Gharar Towards the Formulation of Esentials of Contract (Arkan) in Islamic Mu'amalat: An Analysis from the Qur' and Hadith”. Al-Bayan Journal of Al-Qur‘an & Al-Hadith 2: 171-188. Ahmad, R. (2003). Fiqh al-Buyu‘ al-Munhiya Anha Ma‘a Tatbiqatuha al-Hadithah fi al-Masarif al-‘Islamiyyah. Jeddah: al-Bank al-‘Islami lil Tanmih al-Ma‘had al-Islami lil Buhuth wa al-Tadrib. Ahmad Suhaimi, Y. Head of Syariah. Kuwait Finance House (Malaysia) Limited. (2011). An Interview, 11 August. al-Darir, S. M. (1997). Al-Gharar in Contracts and its Effect on Contemporary Transactions. Jeddah: Islamic Research and Training Institute, Islamic Development Bank. Bursa Malaysia. (2010). May 1. www.klce.com.my. Chance, D. M., & Brooks, R. (2007). An Introduction to Derivatives and Risk Management. Mason, OH: Thomson/South-Western. Chance, D. M. (2008). Essays in Derivatives: Risk-Transfer Tools and Topics Made Easy. New Jersey: John Wiley & Sons. Chorofas, D.N. (2008). Introduction to Derivatives Financial Instruments: Options, Futures, Forward, Swap and Hedging. New York: McGraw-Hill. Durbin, M. (2006). All About Derivatives: The Easy Way to Get Started. New York: McGraw-Hill. Dubofsky, D. A., & Miller, T. W. (2003). Derivatives: Valuation and Risk Management. New York: Oxford University Press. El-Gamal, M. (2001). “An Economic Explication of the Prohibitions of Gharar in Classical Islamic Jurisprudence”. Islamic Economics Studies, 2, 29-58. Hassan Zainal, M. Senior Executive Sales and Logistic, Felda Palm Industries (P) Ltd. (2012). An Interview, 10 January and 26 April. Hull, J. C. (2003). Options, Futures & Other Derivatives. New Jersey: Pearson/Prentice Hall. Ibn Qayyim al-Jawziyyah, M. (1993). I‘lam al-Muwaqi‘in ‘An Rabb al-‘Alamin. Beirut: DƗr al-Kutub al-‘ Ilmiyyah. Jarrow, R. A., & Turnbull, S. (1996). Derivatives Securities. Ohio: South-Western College Publishing. Khan, M. F. (1995). Islamic Futures and Their Markets: With Special References to their Role in Developing Rural Financial Market. Jeddah: Islamic Research and Training Institute, Islamic Development Bank. Kolb, R.W., & Overdahl, J. A. (2003). Financial Derivatives. New Jersey: John Wiley & Sons. Loader, D. (2005). Clearing and Settlement of Derivatives. Oxford: Elsevier/Butterworth-Heinemann. McDonald, R. L. (2003). Derivatives Market. Boston: Addison-Wesley. Muhammad Syahrin, H. Maanger, OTC, Direct Clearing & Exchange Link, Market Operations, Bursa Malaysia. (2011). An Interview, 5 April. M. Fazilah, A. S. (2006). The Malaysian Financial System: An Overview. Kuala Lumpur: University Malaya Press. Nik Mohamed Ruslin, N. J. (1998). Forward Derivatives Contract Market of Crude Palm Oil . Paperwork presented at the 3rd Syariah Experts Seminar , 30 October. Obiyathulla, I. B. (1999). “Derivative Instruments and Islamic Finance: Some Thoughts for a Reconsiderations”. International Journal of Islamic Financial Service 1: 1-34. Obiyathulla, I. B. (2007). Financial Derivatives: Markets and Applications in Malaysia. Kuala Lumpur: MacGraw Hill Education. Rosalan, A., Noryati, A., & Ho, S. F. (2006). Introduction to Malaysian Derivatives. Shah Alam: MARA Technology University. Ruzman Md. N. (2007). “Burden of Proof in the Case of Matrimonial Property in Malaysia Syariah Court”, Syariah Journal, 15, 29-42. al-Saati, A. R. (2003). “The Permissible Gharar (Risk) in Calassical Islamic Jurisprudence”. J.KAU: Islamic Econ, 2, 3-19. al-Sanhuri, ‘A. A. (1954). Masadir al-Haq fi al-Fiqh al-Islami. Beirut: DƗr al-Ihya’ al-Turath al-‘Arabi. Sami, S. (2000). “Towards an Objective Measure of Gharar in Exchange”. Islamic Economic Studies, 1 & 2, 62-102. Smolarski, J., Schapek, M., & Mohammad, I. T. (2006). “Permissibility and Use of Options for Hedging Purpose in Islamic Finance”. Thunderbird International Business Review, 48, 425-443. Strong, R. A. (2002). Derivatives: An Introduction. Ohio: South-Western. Securities Commission. (2005). Malaysian Futures & Options: Examination Study Guide, Module 2: Futures. Kuala Lumpur: Securities Commission. Taylor, F. (2007). Mastering Derivatives Market: A Step-by-Step Guide to the Products, Application and Risks. Harlow: Financial Times/Prentice Hall. Teoh, B. C. Deputy CEO. The Palm Oil Refiners Association of Malaysia (PORAM). (2011). An Interview, 6 October . |
| originalfilename | 5906-01-FH02-FKI-15-02675.jpg |
| person | UniSZA Unisza unisza |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=11644 |
| spelling | 11644 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=11644 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal UniSZA Unisza unisza image/jpeg inches 96 96 1420 72 72 781 2015-03-23 08:46:38 1420x781 5906-01-FH02-FKI-15-02675.jpg UniSZA Private Access Gharar in forward and futures contracts? Mediterranean Journal of Social Sciences This paper attempts to analyze the elements of gharar that exist in forward and futures contracts of crude palm oil in Malaysia. A calculation that reflects the level of confidence the presence of gharar issue in forward and futures contracts was also carried out. Forward and futures contracts are the most common types of derivative instruments. The value of this contract is derived from the values of underlying assets such as commodities, equities, and currencies. Muslim scholars differ on the permissibility of forward and futures contracts. Among the key issues raised in contracts is the issue of gharar. This study uses a thematic analysis approach to explain the data collected through secondary sources and interviews with few individuals involved in this industry. The finding of this research indicates that the issue of gharar existed in forward contracts as there is no regulatory body to monitor the contracts. Whilst, futures contracts which are traded on the exchange, the element of gharar are minimized by the role of a clearing house that acts as a regulator ensuring compliance from the contracting parties when the contract is made. 6 2 Mediterranean Centre of Social and Educational Research Mediterranean Centre of Social and Educational Research 435-441 Abdulkader, T. (2005). “Risk Management and Derivatives” in Abdul Kader Thomas, Stella Cox and Bryan Kraty (ed.), Structuring Islamic Financial Transactions. United Kingdom: Euromoney Books. ‘Abdul al-Aziz, M.‘A. (2005). al-Qawa’id al-Fiqhiyyah. Kaherah: Dar al-Hadis. Ahmad Hidayat, B. (2004). “The Significance of Prohibition of Gharar Towards the Formulation of Esentials of Contract (Arkan) in Islamic Mu'amalat: An Analysis from the Qur' and Hadith”. Al-Bayan Journal of Al-Qur‘an & Al-Hadith 2: 171-188. Ahmad, R. (2003). Fiqh al-Buyu‘ al-Munhiya Anha Ma‘a Tatbiqatuha al-Hadithah fi al-Masarif al-‘Islamiyyah. Jeddah: al-Bank al-‘Islami lil Tanmih al-Ma‘had al-Islami lil Buhuth wa al-Tadrib. Ahmad Suhaimi, Y. Head of Syariah. Kuwait Finance House (Malaysia) Limited. (2011). An Interview, 11 August. al-Darir, S. M. (1997). Al-Gharar in Contracts and its Effect on Contemporary Transactions. Jeddah: Islamic Research and Training Institute, Islamic Development Bank. Bursa Malaysia. (2010). May 1. www.klce.com.my. Chance, D. M., & Brooks, R. (2007). An Introduction to Derivatives and Risk Management. Mason, OH: Thomson/South-Western. Chance, D. M. (2008). Essays in Derivatives: Risk-Transfer Tools and Topics Made Easy. New Jersey: John Wiley & Sons. Chorofas, D.N. (2008). Introduction to Derivatives Financial Instruments: Options, Futures, Forward, Swap and Hedging. New York: McGraw-Hill. Durbin, M. (2006). All About Derivatives: The Easy Way to Get Started. New York: McGraw-Hill. Dubofsky, D. A., & Miller, T. W. (2003). Derivatives: Valuation and Risk Management. New York: Oxford University Press. El-Gamal, M. (2001). “An Economic Explication of the Prohibitions of Gharar in Classical Islamic Jurisprudence”. Islamic Economics Studies, 2, 29-58. Hassan Zainal, M. Senior Executive Sales and Logistic, Felda Palm Industries (P) Ltd. (2012). An Interview, 10 January and 26 April. Hull, J. C. (2003). Options, Futures & Other Derivatives. New Jersey: Pearson/Prentice Hall. Ibn Qayyim al-Jawziyyah, M. (1993). I‘lam al-Muwaqi‘in ‘An Rabb al-‘Alamin. Beirut: DƗr al-Kutub al-‘ Ilmiyyah. Jarrow, R. A., & Turnbull, S. (1996). Derivatives Securities. Ohio: South-Western College Publishing. Khan, M. F. (1995). Islamic Futures and Their Markets: With Special References to their Role in Developing Rural Financial Market. Jeddah: Islamic Research and Training Institute, Islamic Development Bank. Kolb, R.W., & Overdahl, J. A. (2003). Financial Derivatives. New Jersey: John Wiley & Sons. Loader, D. (2005). Clearing and Settlement of Derivatives. Oxford: Elsevier/Butterworth-Heinemann. McDonald, R. L. (2003). Derivatives Market. Boston: Addison-Wesley. Muhammad Syahrin, H. Maanger, OTC, Direct Clearing & Exchange Link, Market Operations, Bursa Malaysia. (2011). An Interview, 5 April. M. Fazilah, A. S. (2006). The Malaysian Financial System: An Overview. Kuala Lumpur: University Malaya Press. Nik Mohamed Ruslin, N. J. (1998). Forward Derivatives Contract Market of Crude Palm Oil . Paperwork presented at the 3rd Syariah Experts Seminar , 30 October. Obiyathulla, I. B. (1999). “Derivative Instruments and Islamic Finance: Some Thoughts for a Reconsiderations”. International Journal of Islamic Financial Service 1: 1-34. Obiyathulla, I. B. (2007). Financial Derivatives: Markets and Applications in Malaysia. Kuala Lumpur: MacGraw Hill Education. Rosalan, A., Noryati, A., & Ho, S. F. (2006). Introduction to Malaysian Derivatives. Shah Alam: MARA Technology University. Ruzman Md. N. (2007). “Burden of Proof in the Case of Matrimonial Property in Malaysia Syariah Court”, Syariah Journal, 15, 29-42. al-Saati, A. R. (2003). “The Permissible Gharar (Risk) in Calassical Islamic Jurisprudence”. J.KAU: Islamic Econ, 2, 3-19. al-Sanhuri, ‘A. A. (1954). Masadir al-Haq fi al-Fiqh al-Islami. Beirut: DƗr al-Ihya’ al-Turath al-‘Arabi. Sami, S. (2000). “Towards an Objective Measure of Gharar in Exchange”. Islamic Economic Studies, 1 & 2, 62-102. Smolarski, J., Schapek, M., & Mohammad, I. T. (2006). “Permissibility and Use of Options for Hedging Purpose in Islamic Finance”. Thunderbird International Business Review, 48, 425-443. Strong, R. A. (2002). Derivatives: An Introduction. Ohio: South-Western. Securities Commission. (2005). Malaysian Futures & Options: Examination Study Guide, Module 2: Futures. Kuala Lumpur: Securities Commission. Taylor, F. (2007). Mastering Derivatives Market: A Step-by-Step Guide to the Products, Application and Risks. Harlow: Financial Times/Prentice Hall. Teoh, B. C. Deputy CEO. The Palm Oil Refiners Association of Malaysia (PORAM). (2011). An Interview, 6 October . |
| spellingShingle | Gharar in forward and futures contracts? |
| summary | This paper attempts to analyze the elements of gharar that exist in forward and futures contracts of crude palm oil in Malaysia. A calculation that reflects the level of confidence the presence of gharar issue in forward and futures contracts was also carried out. Forward and futures contracts are the most common types of derivative instruments. The value of this contract is derived from the values of underlying assets such as commodities, equities, and currencies. Muslim scholars differ on the permissibility of forward and futures contracts. Among the key issues raised in contracts is the issue of gharar. This study uses a thematic analysis approach to explain the data collected through secondary sources and interviews with few individuals involved in this industry. The finding of this research indicates that the issue of gharar existed in forward contracts as there is no regulatory body to monitor the contracts. Whilst, futures contracts which are traded on the exchange, the element of gharar are minimized by the role of a clearing house that acts as a regulator ensuring compliance from the contracting parties when the contract is made. |
| title | Gharar in forward and futures contracts? |
| title_full | Gharar in forward and futures contracts? |
| title_fullStr | Gharar in forward and futures contracts? |
| title_full_unstemmed | Gharar in forward and futures contracts? |
| title_short | Gharar in forward and futures contracts? |
| title_sort | gharar in forward and futures contracts? |