Tuesday, December 11, 2007

LSE welcomes first Shari'ah compliant exchange traded funds

from Hedge Funds Review (UK)

The first ever Shari’ah compliant exchange traded funds (ETFs) have been listed on the London Stock Exchange’s main market. The three funds launched by iShares (Barclays) enhance the range of Shari’ah compliant products available in London, underlining the City’s emerging role as an important centre for Islamic finance. The three funds are the iShares MSCI World Islamic, the iShares MSCI USA Islamic and the iShares MSCI Emerging Markets Islamic. The funds’ compliance with Shari’ah requirements will be reviewed annually by a Shari’ah Panel ... David Shrimpton head of product management and development at the LSE, said “The range of Shari’ah compliant products listed on the LSE’s main market continues to grow. In the past year and a half we have admitted 14 Islamic finance instruments, or sukuk, to trading on our markets, which have raised in excess of £5 billion ($10.1 billion ).” The LSE is playing a key part in the drive by the UK Government and the City to enhance London's position as a global gateway for Islamic finance, and is part of HM Treasury’s Islamic Finance Experts Group, which is currently examining the feasibility of the UK Government becoming an issuer of wholesale sterling Islamic financial instruments.

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