Risk management position in derivatives clearing company

Assalamu alaykum,

is it permissible to work as a risk manager in the derivatives clearing exchange? The company clears derivative trades as a central counterparty (CCP). The job involves modeling the risk of derivative products. Would it be any better than working as a risk manager at a bank?

JazakAllah Khairan.

@Mufti_Faraz_Adam and @Mufti_Billal: would you be able to guide me to make a right decision on this? Would it be completely forbidden to go for such roles or is there any different sharia ruling on this? The company does not generate revenues from interest and the trade commissions from derivative clearing are the mains source of the revenue, but derivatives are in general not permissible. Is the shariah rule here the same as for banks? As long as someone is not directly involved in interest / derivative transactions in the form of trading or signing the contract, would it be permission to accept such a role?

JazakAllah Khairan.


May Allah bless you.

As you have mentioned, conventional derivatives are mainly haram instruments. Therefore, providing a risk assessment which facilitates its clearance, is similar to assisting in its trading, which makes it impermissible too. Such role I am afraid would not be shariah compliant.

And Allah knows best!

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JazakAllah Khairan! May Allah bless you.