Kusuma, Ketut AriadiCaputo Silva, Anderson2014-12-122014-12-122014-12https://hdl.handle.net/10986/20702The issuance of sukuk, as an instrument in Islamic finance, has been growing in recent years. Many policy makers and businesses are looking at the sukuk markets as sources of long-term financing. The paper identifies key issues impeding further development of sukuk markets globally, namely, standardization of structures and practices, investor protection concerns relating to insolvency and governance regimes, and market liquidity. The paper also offers approaches in developing domestic sukuk markets and in accessing the international market. The authors suggest that, in developing domestic sukuk markets, policy makers use a framework similar to that of the development of conventional bond markets, that is, by establishing (1) well-functioning money markets, (2) efficient primary markets and securities-offering regimes, (3) a robust and diversified investor base, (4) a market infrastructure that facilitates trading, price transparency, and efficient clearing and settlement of transactions, (5) derivatives market and hedging tools to support risk management by issuers and investors, and (6) a credible legal and regulatory framework. In accessing the international market, the issues policy makers or potential sukuk issuers should consider include awareness of and knowledge of sukuk, legal foundation, taxation, governance, and obligors' credit rating.en-USCC BY 3.0 IGOACCOUNTINGASSET CLASSASSET MANAGEMENTASSET-BACKED SECURITIESBANKING ASSETSBONDBOND MARKETBOND MARKETSBONDSCAPITAL INVESTMENTCASH FLOWCASH FLOWSCASH MARKETSCENTRAL BANKCENTRAL BANK BILLSCENTRAL BANKSCOLLATERALCOLLECTIVE INVESTMENTCONVENTIONAL FINANCECORPORATE BONDCORPORATE BOND MARKETSCORPORATE BONDSCREDIT CULTURECREDIT RATINGCREDIT RISKCREDIT RISK ASSESSMENTSCREDIT RISK EXPOSURESCREDIT SPREADSCUSTODYDEBTDEBT INSTRUMENTSDEBT SECURITIESDEBTSDEFAULTSDERIVATIVEDERIVATIVE INSTRUMENTSDERIVATIVE PRODUCTSDERIVATIVESDERIVATIVES MARKETDERIVATIVES MARKETSDEVELOPMENT BANKDISCLOSURE REQUIREMENTDISCLOSURE REQUIREMENTSDISPUTE RESOLUTIONDIVERSIFIED FINANCINGDIVERSIFIED INVESTORDIVERSIFIED INVESTOR BASEDOMESTIC BONDDOMESTIC BOND MARKETSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC MARKETDOMESTIC MARKETSEMERGING MARKETSENABLING ENVIRONMENTEXCHANGE RATESFACE VALUEFEDERAL RESERVEFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL SYSTEMFOREIGN EXCHANGEFOREIGN INVESTORSFREE ASSETSGOVERNMENT ASSETSGOVERNMENT BONDGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT DEBT SECURITIESGOVERNMENT DEFICITGOVERNMENT POLICYGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETINCOME INSTRUMENTSINFLATIONINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCINGINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE COMPANIESINTEREST RATEINTEREST RATE SWAPINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL INVESTORSINTERNATIONAL MARKETINTERNATIONAL MARKETSINVESTINGINVESTMENT ALLOCATIONINVESTMENT DECISIONSINVESTMENT FUNDSINVESTMENT POLICIESINVESTMENT REGULATIONSINVESTMENT STRATEGIESINVESTMENT STRATEGYINVESTOR CONFIDENCEINVESTOR INTERESTINVESTOR PARTICIPATIONINVESTOR PROTECTIONISLAMIC BANKINGISLAMIC BANKSISLAMIC BONDISLAMIC CAPITALISLAMIC CAPITAL MARKETISLAMIC FINANCEISLAMIC FINANCIAL INDUSTRYISLAMIC FINANCIAL INSTITUTIONSISLAMIC FINANCIAL INSTRUMENTISLAMIC FINANCIAL INSTRUMENTSISLAMIC FINANCIAL MARKETISLAMIC FINANCIAL MARKETSISLAMIC FINANCIAL SERVICESISLAMIC INSTRUMENTSISLAMIC INSURANCEISLAMIC INVESTORSISLAMIC SCHOLARISSUANCEISSUANCESLEGAL FRAMEWORKLEGAL OWNERSHIPLENDERSLEVEL PLAYING FIELDLIQUID INSTRUMENTSLIQUIDITY MANAGEMENTLOCAL CURRENCIESLOCAL CURRENCYLONG-TERM INTERESTMARKET ACCESSMARKET DEVELOPMENTMARKET INFRASTRUCTUREMARKET LIQUIDITYMARKET MAKINGMARKET PARTICIPANTSMARKET PLAYERSMARKET PRICESMARKET SEGMENTATIONMARKET SHAREMARKET SIZEMARKET SPECIALISTMARKET TRADESMARKET TRANSACTIONSMARKET-MAKINGMATURITIESMATURITYMONETARY POLICYMONEY MARKETMONEY MARKET INSTRUMENTSMONEY MARKETSMORTGAGEMORTGAGE BONDSMUNICIPAL BONDSMUTUAL FUNDSPAR VALUEPENSIONPENSION FUNDSPORTFOLIOPORTFOLIO VALUATIONPORTFOLIOSPRICE BENCHMARKSPRICE DISCOVERYPRICE FORMATIONPRICE TRANSPARENCYPRIMARY DEALERPRIMARY DEALER SYSTEMPRIMARY DEALER SYSTEMSPRIMARY MARKETPRIMARY MARKETSPRINCIPAL PAYMENTPUBLIC OFFERINGPUBLIC OFFERINGSREGISTRATION PROCESSESREGULATORY FRAMEWORKREPOREPO AGREEMENTSREPO MARKETREPOSRETAIL INVESTORRETAIL INVESTORSRETURNRISK MANAGEMENTRISK MANAGEMENT TOOLSRISK SHARINGSECONDARY MARKETSECONDARY MARKET LIQUIDITYSECONDARY MARKETSSECURITIESSECURITIES MARKETSECURITIES REGULATIONSSETTLEMENTSETTLEMENT OF TRANSACTIONSSETTLEMENT PROCEDURESSHORT-TERM LIQUIDITYSOVEREIGN DEBTSOVEREIGN ISSUERSSUKUKSWAPSWAP CURVESTAXTAX TREATMENTTRADINGTRANSACTIONTRANSACTION COSTSUNDERLYING ASSETSVALUATIONYIELD CURVE10.1596/1813-9450-7133