Warren Edwardes interviewed by
David Stringer of Associated Press.
"There has been an exponential
growth in issues of Sukuk (Islamic Asset backed Notes) in the past few years
and many banks in the Gulf are converting or have converted from
conventional to Islamic Banking" says Warren Edwardes, CEO of financial
product risk and innovation consultancy Delphi Risk Management. "The UK
authorities - The Bank of England, FSA and The Treasury - have been
supportive of Islamic Banking for some years. This has enforced London's
already pre-eminent position in the market. London has long been a leader in
global capital markets from the days of post-war Eurobonds to gold and
commodity trading and international banks have their capital markets
headquarters here rather than elsewhere. So it is only natural that a new
global market such as Islamic Banking will be London based.
"Beyond capital markets and
increasingly Islamic derivatives, London will be used as a stepping-stone by
banks to serve the European Islamic community."
"Exporting firms seeking to
curry favour with Gulf importers will be well advised to structure any
export related financing in a Sharia compliant way."
"There remain gaps in the
Islamic market. The embryo state of Islamic Derivatives, Asset/Liability
Management and Liquidity management is an issue that is being tackled. Sukuk
are held to maturity and there is virtually no secondary market trading. So
marking to market has to be benchmarked versus conventional similar assets
and a yield curve is absent."
Warren Edwardes is CEO of Delphi
Risk Management, the London-based financial product creativity,
communication and control consultancy.
Warren was previously on the board
of Charterhouse Bank and has worked in the treasury divisions
of Barclays Bank, British Gas and Midland Bank. He first researched
into what were later to be called "derivatives" in 1975
and was part of the team that executed one of the world's first
currency swaps in 1981. Since then he has devised and transacted
numerous structures that form part of the history of derivatives.
Warren can be contacted via
Warren Edwardes <note spelling of
edwardes> is author of best seller "Key
financial instruments: understanding and innovating in the world of
derivatives" which includes an appendix on Islamic Banking. see
are the Innovation, Communication & Risk Management arms of Delphi Risk
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