The ISDA/IIFM Tahawwut Master Agreement is a global master`s agreement for transactions in Islamic derivatives. The document contains the first standard contractual document for cross-border transactions in Shariah-compliant derivatives. Like the ISDA Masteragrement 2002, on which it is based, the ISDA/IIFM Tahawwut Master Agreement is a multi-product framework agreement. The document was drafted with the aim of documenting the exchange of Islamic currencies and profits based on the murabaha of raw materials. and the footnote on the definition of designated assets is as follows: the agreement introduces the concept of future designated transactions. These are either transactions on which the parties who make them at a later date, or transactions that one party concludes in accordance with a wa`ad to the other party with a view to proceeding later to the election of the other party. The agreement with these transactions is referred to as « DFT conditions. » Future designated transactions are confirmed by confirmation of DFT`s terms and conditions. Pending their transaction, designated future transactions are not transactions within the meaning of the agreement and are therefore treated differently from the transactions concluded (particularly with respect to closure). However, after the transaction, designated future transactions are transactions within the meaning of the agreement. While the term « fully supplied futures transaction » is clearly defined32, the term « not fully delivered futures transaction » is defined as any « term transaction » that is not a « fully delivered futures transaction »33. The latter definition, however, is not ambiguous. It may relate to a transaction entered into (a) in which the purchase price was paid but the asset was not delivered, b) if the purchase price has not been paid (provided it is unpaid and payable) and the asset has not been delivered or (c) when the purchase price has not been paid (but is due and payable) and the asset has not been delivered.
The term « not fully provided futures transaction » is considered to include (a) and (c) and not B and B agreements, which are considered DFT terms. In addition, the parties may agree from time to time (confirming documents and other evidence exchanged between the parties or in some other valid manner to confirm or confirm and confirm such an agreement as « confirmation of the terms of the DFT, » and each of these agreements is a « DFT agreement »), the terms of other transactions being each (i) a transaction: the parties agree to enter into an agreement between them in the future under this master contract or (ii) a transaction which, by such an agreement of terms of DFT, undertakes to conclude to the other (the second party) under this steering contract in the election of the second part at a later date (all these other transactions are « future transactions »).