Monday, February 6, 2017

Islamic finance in Europe (29)

Continuation
The author continues:
These instruments (futures, forwards and other derivatives) are also subject to the prohibition on maysir.
Thus, maysir condemns the speculative exploitation of legal uncertainty.
Actually, legal uncertainty draws an unjustified (because it is unfair) advantage.
In addition, speculation (maysir) is seen as diverting resources from productive activities.
Gharar and maysir render a contract:
o   null;
o   and void
However, there can be some exceptions to the above described general principle.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)

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