Futures contract meaning

Terminology In bai salam arrangements, the purchaser is known as the rabb-us-salam, the vendor as the muslam ilaih, the agreed price as the ra’s-ul-mal, and the underlying item as the muslam fih. Owing to the historic foundations of Shari'ah principles—and the jurisprudence informing bai salam—the language largely centres on commodities, particularly within agriculture. As contemporary Shari'ah structures have broadened to suit a wider range of situations, this Practice Note will therefore use ‘assets’ rather than ‘commodities’. It should be noted that not every asset is suitable for a bai salam arrangement (see the section on ‘Excluded assets’ below). The roots of bai salam reach back to the earliest Islamic era, created to assist farmers and agricultural labourers who needed funds to cultivate crops and deliver the harvest. Bai salam is also commonly termed bay salam, bai al-salam, bay al-salam, or simply salam. Impact of differing Shari'ah schools of thought and scholars: a number of Shari'ah-compliant transactions, particularly those that have been in operation for a significant amount of...

This Practice Note sets out the core concepts and issues concerning ETDs, including: what ETDs are and how they operate how ETDs mitigate counterparty risk via clearing and collateralising trades how ETDs are traded and matched on a regulated exchange how ETDs are given-up for clearing, and how collateral is managed For more information on the differences between OTC derivatives and ETDs, see Practice Notes: OTC and exchange traded derivatives—key features and concepts and OTC and exchange traded derivatives—documentation. What are exchange traded derivatives? ETDs are derivative contracts entered into through a regulated exchange (the Exchange). The Exchange functions as a market mechanism that enables the exchange of offsetting derivative positions. It offers a venue where a relatively narrow range of futures and options is traded on standard terms. To be traded and matched on the Exchange, contracts must carry highly standardised terms and conditions. Unlike often bespoke OTC derivative contracts, ETDs are generally inflexible regarding the selection...

Updated in October 2025 Introduction Since the mid-twentieth century, Taiwan has stood among the ‘Asian Tigers’, sustaining a vibrant capitalist economy with a strong global footprint. The World Trade Statistical Review 2025 records Taiwan as the 16th largest exporter in world merchandise trade for 2024, while the IMD World Competitiveness Yearbook 2025 ranks it 6th worldwide. The government also provides a range of attractive incentives that enhance Taiwan’s business-friendly appeal. Supported by political stability and a dependable domestic market, deep expertise in both hardware and software engineering, a rich pool of high-calibre talent, mature infrastructure, and favourable investment legislation, Taiwan offers a compelling setting for enterprise. Positioned at the heart of the Asia Pacific, it serves as a strategic bridge to major economies including the US, China, Japan and Korea, along with emerging markets such as the ASEAN Economic Community (AEC). In June 2010, the People’s Republic of China (PRC) and Taiwan concluded the Economic Cooperation Framework Agreement (ECFA), further reinforcing Taiwan’s role as an appealing economic hub...