Imam Sadiq University "Islamic Finance Research" (IFR) 2251-8290 2 2 2013 04 21 A Jurisprudential Feasibility Study of Designing Interest Rate Swap in Proportion to the Iranian Capital Market A Jurisprudential Feasibility Study of Designing Interest Rate Swap in Proportion to the Iranian Capital Market 55 86 1643 10.30497/ifr.2013.1643 FA Gholam Ali Masouminia Associate Professor, Faculty of Economics, Kharazmi University Mahdi Elahi PhD student in financial management at Allameh Tabatabai University Journal Article 2015 08 23 Swap contracts, as kind of derivative instruments, are of high importance and usage in financial markets. One widely-used sort of them is interest rate swap contract. As the Iranian financial market is developing, it is needed that all new instruments be assessed by jurisprudential standards. In this article, besides examining interest rate swap contract with regard to its different definitions, sorts, features, models, applications, advantages, disadvantages, and the necessity of its being used in the Iranian financial market, we have assessed its jurisprudential and juridical aspects for the first time. By examining the jurisprudential aspect of interest rate swap contract using a descriptive-analytical and documentary approach, this article tries to prove the hypothesis that although such a contract in proportion to Iranian financial market is not amendable due to the presence of usury in the form of  Bai and Muawadah, it may be designed through "Bai al khiar". Swap contracts, as kind of derivative instruments, are of high importance and usage in financial markets. One widely-used sort of them is interest rate swap contract. As the Iranian financial market is developing, it is needed that all new instruments be assessed by jurisprudential standards. In this article, besides examining interest rate swap contract with regard to its different definitions, sorts, features, models, applications, advantages, disadvantages, and the necessity of its being used in the Iranian financial market, we have assessed its jurisprudential and juridical aspects for the first time. By examining the jurisprudential aspect of interest rate swap contract using a descriptive-analytical and documentary approach, this article tries to prove the hypothesis that although such a contract in proportion to Iranian financial market is not amendable due to the presence of usury in the form of  Bai and Muawadah, it may be designed through "Bai al khiar". https://ifr.isu.ac.ir/article_1643_f670ef5d2d6bdf8f29450a970494dd64.pdf