Islamic derivative financial instrument "Islamic derivative financial instrument" means futures, forward, swap, or option contract which is in compliance with Shariah principles, or other financial instrument with similar characteristics but shall not include:- (a) all on-balance-sheet receivables and payables, including those that derive their values or contractually require cash flows from the price of some other security or index, such as mortgage-backed securities, profit-only and principal-only obligations, and indexed financial instruments, in compliance with Shariah principles; and (b) option features that are embedded within an on-balancesheet receivable or payable, such as the conversion feature and call provisions embedded in convertible Sukuk, in compliance with Shariah principles; ACT 705 - LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010 60. Interpretation.