ISLAMIC COMMODITY ONLINE NETWORK

Ambro Limited, a global leader in the provision of Islamic financial services, has established a secure, web-based, commodity transaction platform featuring multiple buyers and sellers to serve financial institutions and other entities that wish to conduct commodity murabaha transactions in a Shari'a compliant manner.

The platform is called the Islamic Commodity Online Network (“ICON”), and offers depth and transparency to the existing commodity murabaha market with real time bids, offers and acceptances and full inventory documentation for base metals.
SHARI'A COMPLIANCE
The Islamic Commodity Online Network (“ICON”) has been designed in collaboration with its retained panel of scholars, Amanie LLC in Dubai, to ensure Shari'a compliance at every stage of the development process. ICON follows some important precepts; principal among these are the following:

  • The transaction flow should follow normal commercial market practice
  • Commodities bought and sold must exist and be Shari’a compliant in all respects
  • Commodity suppliers must have title to goods they intend to sell
  • Title of goods must pass to each counterparty in exchange for payment
  • Buyers can take physical delivery of goods in exchange for payment to suppliers
The benefits of trading on ICON include:
On-line Transactions

Inventory

Physical Delivery

Market Liquidity

Real-time Transactions

Commodity Pricing

Commodity Ownership

Cash Movement

Possession of goods

Role of Clearing House
Open to members by signing Network Agreement

Physical goods offered directly by suppliers (no broker intermediary) - up to $1bn inventory available

Ability for Network Participant to select physical delivery or cash settlement

Multiple Suppliers and Multiple Buyers

Regional operating hours with automated Supplier offers and Buyer bids

Same day settlement price, multi-currency

Title and risk of loss passes upon receipt of payment for goods

Cash deposited with Network Participant on behalf of Supplier

Goods remain in custody until delivery terms are agreed and payment received

Accepts obligations of members at the moment after sale (transparent auction)