An Islamic finance arrangement which is similar to an interest rate swap but is structured to be Sharia compliant. Under a profit rate swap, two parties agree to exchange periodic fixed and floating payments by multiplying a pre-agreed notional amount by the applicable fixed and floating rates agreed by the parties. The resulting amounts are then paid by the parties to one another. This exchange is affected using a murabaha contract to generate the fixed rate payments and a reverse murabaha or tawarruq contract to generate the floating rate payments. For more information on profit rate swaps, see Article, Development of Islamic Derivatives: ISDA/IIFM Ta'Hawwut Master Agreement.