The International Islamic Financial Market (IIFM), an international market development institution focused on the development of the global Islamic capital and money markets, has announced a high-profile event to be held in Bahrain this month.

THE IIFM has organized a high-level technical workshop intended to gauge industry opinion on the need for a risk management and regulatory reporting system for Islamic Financial Institutions (IFIs) and sukuk-related secondary market products, such as an Islamic repurchase agreement (Repo). The event, which is being organized in co-ordination with the Central Bank of Bahrain (CBB), will be held on April 26, at the CBB premises.

It will be attended by top executives from more than 25 IFIs.

"As an organization focused on the promotion and development of the global Islamic capital and money markets, the IIFM is taking a number of initiatives, in the area of primary and secondary market, which will facilitate the sound development of such markets, across borders," said IIFM chief executive officer Ijlal Alvi.

The workshop is the first in a series of three high-level deliberations planned to be held in Bahrain and London.

At the final workshop, to be held in Bahrain on June 18, five primary and secondary market, as well as infrastructure development projects, are expected to be finalized for implementation.

The first workshop is aimed at assessing the need for a Sharia-compliant version of a trade matching, operational risk matching and regulatory reporting tool, TRAX2.

IIFM officials will lead discussions with the assistance of key industry experts on the possible development of an Islamic Master Repo Agreement.

Such market development initiatives are critical for activating sound, effective and truly global Islamic capital and money markets, both primary and secondary markets, said Mr Alvi.

The IIFM is currently advancing a number of other projects, aimed at developing the overall infrastructure for Islamic capital and money markets, including the development of a framework agreement for Islamic hedging.

This will be the basis of further research and eventual development of a hedging product, in alliance with the New York-based International Swaps and Derivatives Association.

Also on the agenda are a Treasury Murabaha Master Agreement and several other projects relating to Islamic capital and money market.

DGN