The agreement introduces the concept of future designated transactions. These are either transactions on which the parties who make them at a later date, or transactions that one party concludes in accordance with a wa`ad to the other party with a view to proceeding later to the election of the other party. The agreement with these transactions is referred to as “DFT conditions.” Future designated transactions are confirmed by confirmation of DFT`s terms and conditions. Pending their transaction, designated future transactions are not transactions within the meaning of the agreement and are therefore treated differently from the transactions concluded (particularly with respect to closure). However, after the transaction, designated future transactions are transactions within the meaning of the agreement. “This is a framework agreement or framework agreement setting out the conditions for which the parties can then enter into risk management agreements. The conclusion of the master`s contract does not result in a transaction. After entering into the captain`s contract, the parties can then enter into other agreements submitted to and submitted to the master contract. “designated assets,” the designated amount of Shari`ah-compliant assets selected as part of an agreement between the parties for The Purpose of Section 6 (f) (v) and specified in the schedule.” The ISDA/IIFM Tahawwut Master Agreement is a global master`s agreement for transactions in Islamic derivatives. The document contains the first standard contractual document for cross-border transactions in Shariah-compliant derivatives.
Like the ISDA Masteragrement 2002, on which it is based, the ISDA/IIFM Tahawwut Master Agreement is a multi-product framework agreement. The document was drafted with the aim of documenting the exchange of Islamic currencies and profits based on the murabaha of raw materials. The publication of the agreement is the culmination of years of work and discussions between ISDA, IIFM, market participants and consultants to conclude an agreement that complies with the requirements of the Shari`a, but at the same time in a form familiar to those operating in the derivatives markets. Allen -Overy LLP was instrumental in the development of the agreement.