9 Qualified Financial Instruments

(1) In these regulations:
qualified financial instrument means a financial instrument, agreement or transaction under which, at a specified time or within a specified period of time:
(a) payment or delivery obligations are to be performed, or title to commodities or assets is to be transferred; or
(b) obligations to make payments or deliveries, or to transfer title to commodities or assets, are to be entered into or incurred.
(2) In particular, an instrument, agreement or transaction of one of the following kinds is a qualified financial instrument:
(a) a currency, cross-currency, interest-rate or profit-rate swap;
(b) a basis swap;
(c) a spot, future, forward or other foreign-exchange transaction;
(d) a cap, collar or floor transaction;
(e) a commodity swap;
(f) a forward rate agreement;
(g) a currency or interest rate future;
(h) a currency or interest rate option;
(i) an equity derivative, such as an equity swap or equity index swap, equity forward, equity option or equity index option;
(j) a derivative relating to bonds or other debt securities, to sukuk or to a bond or debt security index or a sukuk index, such as a total return swap, index swap, forward, option or index option;
(k) a credit derivative, such as a credit default swap, credit default basket swap, total return swap or credit default option;
(l) an energy derivative, such as an electricity derivative, oil derivative, coal derivative or gas derivative;
(m) a weather derivative, such as a weather swap or weather option;
(n) a bandwidth derivative;
(o) a freight derivative;
(p) an emissions derivative, such as an emissions allowance or emissions reduction transaction;
(q) an economic statistics derivative, such as an inflation derivative;
(r) a property index derivative;
(s) a spot, future, forward or other securities or commodities transaction;
(t) a securities contract, including a financing collateralised by securities such as a margin loan, an agreement to buy, sell, borrow or lend securities, such as a securities repurchase or reverse repurchase agreement, a securities lending agreement or a securities buy/sell back agreement, including any such contract or agreement relating to mortgage loans, interests in mortgage loans or mortgage-related securities;
(u) a commodities contract, including an agreement to buy, sell, borrow or lend commodities, such as a commodities repurchase or reverse repurchase agreement, a commodities lending agreement or a commodities buy/sell back agreement;
(v) a collateral arrangement;
(w) an agreement to clear or settle securities transactions or to act as a depository for securities;
(x) any other instrument, agreement or transaction similar to an instrument, agreement or transaction of a kind referred to in paragraphs (a) to (w) with respect to one or more reference items relating to interest rates, currencies, commodities, energy products, electricity, equities, weather, sukuk, bonds or other debt instruments, precious metals, quantitative measures associated with an occurrence, the extent of an occurrence or contingency associated with a financial, commercial or economic consequence, or economic or financial indices or measures of economic or financial risk value;
(y) a swap, forward, option, contract for difference or other derivative in respect of, or combination of, one or more instruments referred to in paragraphs (a) to (x);
(z) an instrument, agreement or transaction that is or effects one of the instruments, agreements or transactions referred to in paragraphs (a) to (y) through use of a murabaha, musawama or wa'ad or any other structure commonly used for the purpose of effecting Shari'a compliant instruments, agreements or transactions.
(3) However, an insurance or reinsurance contract entered into by a licensed or authorised insurance company as part of its insurance business is not a qualified financial instrument.
Derived (as from 19th October 2017).