Master Participation Agreement for Trade Transactions

BAFT (Bankers Association for Finance & Trade), an international financial services association, today announced the release of an updated English law Master Participation Agreement (MPA). The original English law MPA, drafted more than 10 years ago, serves as the industry standard for secondary market transactions to facilitate the buying and selling of trade finance-related assets globally.BAFT, together with ITFA (International Trade and Forfaiting Association), put together a working group of experts to review the existing forms and identify necessary changes based on current market practice. International law firm, Sullivan & Worcester, drafted the modernized English law MPA form and associated usage guidelines. An updated New York law version is expected in the coming months.The agreement continues to help standardize documentation for trade finance transactions and will enable bank clients, government bodies, and investors to better understand and utilize trade finance assets.“The revisions to the BAFT MPA continues our efforts to standardize industry documentation, facilitate better transaction efficiency and provide greater consistency,” Tod Burwell, president and CEO of BAFT, said.The updated MPA and related guidelines address major components related to secondary market activities such as risk transfer, compliance requirements and enforceability concerns for various trade assets.