CAPITAL MARKETS - Istanbul Stock Exchange's CEO and chairman unveils plans to expand Shariahcompliant securities

www.euromoney.com - Ibrahim Turhan, newly appointed CEO of Istanbul Borsasi, talks exclusively to Euromoney about his plans to expand Shariah-compliant products
Ibrahim Turhan, the CEO and chairman of Istanbul’s stock exchange, exclusively met with Euromoney in Turkey and revealed ambitious plans to reform the Turkish capital markets.
However, his first action as chairman was more symbolic than practical: renaming the stock exchange.
The Istanbul Stock Exchange is now known as Istanbul Borsasi. This might seem a small change but it is significant to Turhan. (full story)

ARTICLES - SPECIAL COMMENT: Turkish exchange plans ties with UAE and Egyptian markets

alifarabia.com - By Rushdi Siddiqui, Global Head of Islamic Finance, Thomson Reuters
Turkey has been building capital market bridges to GCC and South East Asia, and chairman of the Istanbul Stock Exchange, Hussain Erkan, has been a leading architect in establishing dialogue, hosting events, and facilitating cooperation and coordination with his counterparts for both Islamic and conventional finance. In this interview, Erkan shares his thoughts on the challenges and progress of Islamic finance in Turkey, among various other issues. He is hopeful that the improvements made should be able to attract investors from the GCC. (source)

CAPITAL MARKETS - Why German blushes could have been saved by a vibrant sukuk market - Turkey ready to move on

Sovereign Germany might be disappointed that its recent Eurobond offering was not fully subscribed. Perhaps in hindsight, had it instead opted to issue a debut Eurosukuk for the same amount, the story might well have been different.

Sukuk issuers, whether conventional entities such as HSBC Middle East or Goldman Sachs (both of which tapped the sukuk market in 2011, or Islamic banks, agree that market conditions in the sukuk space is more favorable than in the conventional space. And this confidence and appetite for Sukuk is backed by rising demand from big institutional investors in the Middle East and Asia. (source)

INTERVIEW - Hussain Erkan - Turkey strives to build closer links with GCC stock exchanges

Turkey has been building capital market bridges to GCC and South East Asia, and chairman of the Istanbul Stock Exchange, Hussain Erkan, has been a leading architect in establishing dialogue, hosting events, and facilitating cooperation and coordination with his counterparts for both Islamic and conventional finance. In this interview, Erkan shares his thoughts on the challenges and progress of Islamic finance in Turkey, among various other issues. He is hopeful that the improvements made should be able to attract investors from the GCC. 

 

Gulf News: Would you kindly explain the role of Istanbul Stock Exchange in providing opportunities for those interested in Islamic finance?

Hussain Erkan: Islamic countries have a huge potential to create wealth in the economy with their rich resources and are capable of achieving more by improving their capital market structure. Since 2005, under the activities of Standing Committee for Economic and Commercial Cooperation of the Organisation of the Islamic Cooperation (COMCEC), Istanbul Stock Exchange (ISE) has been working on creating this awareness and developing the exchange industry in Islamic countries by acting as the coordinator of the Organisation of Islamic Cooperation (OIC) member states’ Stock Exchanges Forum. We also cooperate with other international institutions such as IIFM (International Islamic Financial Market)? on developing an appropriate structure to create solutions for increasing the liquidity of Islamic capital market instruments. (source)

FINANCE - MALAYSIA - IILM Chief: Main Challenge Is To Appreciate All Jurisdictions

JAKARTA, July 19 (Bernama) -- The main challenge now for the International Islamic Liquidity Management (IILM) Corporation, perhaps, is to find the most common denominator among the jurisdictions for the global Islamic finance market, said Chief Executive Officer Mahmoud AbuShamma.

"We have to appreciate the different jurisdictions. We have institutions from Asia, Middle East and others. That's the main challenge," he said. (source)

CAPITAL MARKETS - IILM likely to issue maiden commercial debt by Dec

THE International Islamic Liquidity Management Corp (IILM) is expected to issue its first commercial papers by the end of the year, said Bank Negara deputy governor Datuk Mohd Razif Abdul Kadir.

The short-term multi-currency instrument will help member central banks to manage liquidity in their Islamic finance markets. (source)

MARKETS - IILM takes a step closer to becoming a reality

The International Islamic Liquidity Management Corporation (IILM), which was launched in Kuala Lumpur in October, took a step closer to becoming a reality when its governing board last week appointed Mahmoud AbuShamma as its inaugural chief executive officer (CEO), for a three-year tenure effective Feb. 1, 2011.

AbuShamma’s tenure is also subject to the adoption by the Malaysian Parliament, the Dewan Rakyat, of a Special Enabling Act which would accord the IILM a special diplomatic status and its attendant privileges.

FINANCE - IILM - Appointment of Chief Executive Officer and Shariah Committee of the IILM

[Kuala Lumpur and  Jeddah, 13 December 2010 / 7 Muharam 1432] - The International Islamic Liquidity Management Corporation (IILM) wishes to announce the appointment of Mr. Mahmoud AbuShamma as its first Chief Executive Officer (CEO) for a three-year tenure effective 1 February 2011.

Prior to his appointment at the IILM, Mr. Mahmoud has served as the Global Head of HSBC Amanah Coverage at HSBC Bank Middle East Limited, Dubai in charge of critical HSBC Amanah relationships globally, including Governments, high networth individuals and top corporate clients. He was instrumental in establishing the HSBC Amanah Syariah unit – the first foreign bank to open an Islamic retail banking unit in Indonesia, and served as its Head from 2003 to 2010. In London, he established and headed the HSBC's Islamic Treasury Unit and originated the first Islamic Syndication by HSBC Amanah.

IILM - Islamic finance liquidity body to issue sukuk in '11

A new global Islamic liquidity management corporation backed by central banks will start issuing Islamic bonds next year to help Islamic banks manage their liquidity, a board member said on Tuesday.

Liquidity management is seen as the weak point of the emerging Islamic finance industry as it currently relies on the use of commodity murabaha, a money market instrument only grudgingly accepted by Islamic scholars for lack of alternatives.

FINANCE - IILM - Retooling Liquidity Management

Islamic repos, or repurchase agreements, provide a new tool in creating and managing liquidity in the Islamic interbank money market. SCOTT WEBER identifies what instruments are available in the market and the extent to which they are being utilized.

Islamic repos aim to provide Islamic financial institutions with an additional avenue to source their funding requirements, providing banks with relevant tools to effectively manage their liquidity needs allowing the banks to finance its asset inventory. 

FINANCE - Shariah Money Markets Expand With Global Bills: Islamic Finance

Oct. 12 (Bloomberg) -- The first global Shariah-compliant money-market securities may be sold early next year, providing Islamic banks with more opportunities to invest reserves and boost profits.

BANKING - Establishment of IILM is a big relief

By Mushtak Parker - Published: Oct 10, 2010

See also : here (earlier post in blog)

The announcement by the Islamic Development Bank (IDB) and the Islamic Financial Services Board (IFSB) last Thursday at the side of the International Monetary Fund (IMF)-World Bank Group annual meetings in Washington that a Memorandum of Participation has been signed for the establishment of the International Islamic Liquidity Management Corporation (IILM) has left the Islamic finance industry with abated breath. The lack of a truly global and well-oiled liquidity management scheme has been the bane of the industry, with no government or supranational taking on the task until now.

BANKING - The IFSB announces the establishment of an International Islamic Liquidity Management Corporation

Washington, 7 October 2010 - The Islamic Financial Services Board (IFSB) today facilitated the signing of the Memorandum of Participation for the establishment of the International Islamic Liquidity Management Corporation (IILM). The primary objective of the IILM is to issue Sharī`ah-compliant financial instruments in order to facilitate more efficient and effective liquidity management solutions for institutions offering Islamic financial services (IIFS), as well as to facilitate greater investment flows of Sharī`ah-compliant instruments across borders.