July 28, 2009

Commodity Murabahah House (CMH), the Syariah based commodity trading platform is expected to unlock a vast potential of opportunities for the Islamic financial industry.Bank Negara Malaysia's deputy governor Datuk Mohd Razif Abd Kadir said the trading platform will also provide a wider range of new instruments.

These will be not only for liquidity management and risk management purposes but players will be able to derive additional linkages by utilising CMH to facilitate issuance of sukuk and in the creation of financing and deposit products, he said.Besides the wide selection of products, CMH will be able to offer more transparent and streamlined commodity transaction practices based on the concept of murabahah or tawarruq, Mohd Razif said at the signing of a memorandum of participation for CMH here Tuesday.