London: First Islamic exchange to launch in May

London: First Islamic exchange to launch in May


In related news, Deutsche Bank announced it has received an International Islamic Banking license from Bank Negara Malaysia, "allowing the Bank to more easily provide Islamic commercial and investment banking services denominated in foreign currencies to institutional clients throughout Asia" (DB, via NRP)


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The first electronic trading platform allowing sharia-compliant companies to raise cash will launch in London in May, the venture capital firm behind the project told Reuters on Thursday.


The Sharia Ummah Securities Information Exchange (UMEX) is designed to provide a platform to companies with a capital value of at least 20 million pounds ($31 million) and looking to raise the equivalent of at least 20 percent of their market value.


Mahesh Jayanarayan, chairman of Halal Industries, which will manage the exchange said it would operate as a Multilateral Trading Facility (MTF).


MTFs are low-cost electronic trading platforms created after the Markets in Financial Instruments Directive (MiFID) opened up exchanges to competition.


It would be the only MTF in Europe so far to help companies raise funds.


"Having been through its early days, it is now time for the Islamic banking and finance sector to strengthen and expand the industry infrastructure to ensure sustainable global operations," said Sheikh Hussein Hamid Hassan, the scholar heading the exchange's sharia panel.


"UMEX has lined up 10 Islamic Enterprises and over a 100 Sharia Compliant securities to be traded when it goes live," said Jayanarayan.


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Source: Reuters (English)

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