Cross-Currency Swap
This is an agreement between two parties to exchange a series of profit payments in one currency for a series of profit payments in another currency over a fixed period of time.
Financial Instruments
Currency Swap
This is a short-term Non-interest foreign currency money market instrument. It is a Non-interest commercial jurispudence compliant investment product which is based on the concept of Mudharabah.
Non-interest Insurance
Non-interest Insurance is founded on the cooperative principle and on the principle of separation between the funds and operations of shareholders, thus passing the ownership of the Takaful (Insurance) fund and operations to the policyholders.
It is based on principles of mutuality and co-operation, encompassing the elements of shared responsibility, joint indemnity, common interest, and solidarity.
In Non-interest Insurance, the policyholders are joint investors with the insurance vendor (the takaful operator), who acts as a Mudarib – a manager or an entrepreneurial agent for the policyholders. The policyholders share in the investment pool's profits as well as its losses.
Non-interest Treasury Bill
Treasury bills are issued to raise short-term funds for the financing of Government expenditure. The instruments are issued using Non-interest principles which are deemed acceptable to Non-interest commercial jurispudence requirements. Non-interest treasury bills are issued and traded based on a discounted basis.
NeX as an integrated exchange offers a good selection of quality Non-interest commercial jurispudence-compliant stocks. We carry out due diligence to determine the Non-interest commercial jurispudence compliance of treasury bills listed and traded on NeX.
Profit Rate Swap
A Non-interest profit rate swap is an agreement to exchange profit rates between a fixed rate party and a floating-rate party, or vice versa, implemented through the execution of a series of underlying contracts to trade certain assets.
Each party’s payment obligation is computed using a different pricing formula. In a Non-interest profit rate swap, the notional principal is never exchanged as it is netted off. The profit payments are made through the execution of a series of underlying Non-interest commercial jurispudence-compliant contracts.
Selling & Buying Negotiated Transaction
A negotiated transaction involves an issuer and a few buyers who negotiate the terms of the transaction instead of competitive bidding.
This Model is structured based on two outright sale transactions that includes the feature of two unilateral promises/undertakings, a conditional option, and the provision of collateral as security for the indebtedness.
Negotiated sales offer confidentiality, efficiency, and are not as disruptive to operations as compared with the competitive bidding process.
Real Estate Investment Trust (REITS) trade
REITs are regulated investment instruments that enable collective investment in real estate, where investors pool their funds and invest in a trust with the intention of earning profits or income from real estate, as beneficiaries of the trust. REITs source funds to build or acquire real estate assets which are sold or rented to generate income.
The income generated is then distributed to the shareholders at the end of a financial year.
Sukuk
Sukuk are financial products whose terms and structures comply with Sharia with the intention of creating returns similar to those of conventional fixed-income instruments like bonds.
Unlike a conventional bond, Sukuk offerings on our exchange technically represent an interest in an underlying funding arrangement structured according to Sharia, entitling the holder to a proportionate share of the returns generated by such arrangement and, at a defined future date, the return of the capital.
By investing in Sukuk offerings listed on our exchange, you do not own a debt obligation, but instead own a piece of the asset that is linked to the investment. This means that unlike bond holders, you will receive a portion of the earnings generated by the associated asset.