Islamic Brokerage

The market share of Islamic financial services is rapidly increasing with different markets trying to be the hub of such products. A number of functionality is required to offer Islamic brokerage services.

Islamic-Compliant Margin
TradeNet provides full administration of extending Islamic-compliant margin to customers using vehicles like Murabaha. This service allows the brokerage firm to extend real-time margin to customers which directly increases revenue.

Rule Books
Different rule books exist that provide criteria for compliance with Islamic principles. Such rule books are used by different customers to classify stocks as compliant or otherwise. TradeNet takes feeds from specialized rating companies like Dow Jones Islamic Index or Ideal Rating and ensures customers’ requests for trading in compliant stocks are met.

Management of Price Feeds
While customers may choose to trade a certain stock, they may still wish to see the price feed for other, non-compliant stocks to make investment decisions. TradeNet allows full control, per user, to determine which prices to be displayed according to pre-defined customer preference.

Purification
This is the process of deducting part of the profit made on a stock that is marginally compliant with a rule book. For example, revenues attributed to non-compliant activities like liquor trading or gambling.. TradeNet reports the purification percentage for each stock to enable customers to handle their purification process.

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