Master agreement landscape

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Negotiation Anatomy™


Master trading agreements: a spotter’s guide
Segment Agreement Publisher Cleared/OTC Asset classes Trade types Collateral? Netting?
Cash markets Terms of business Broker OTC Equities, fixed income, FX Cash equities
Spot FX
Other spot or short-dated DVP transactions
No. No.
Derivatives ISDA Master Agreement
Regional variations (FBF, DRV, CMOF, SMA)
ISDA
Regional industry bodies
OTC, OTC to CCP All Swaps, forwards, options
Some securities financing.
Yes. Yes.
Exchange-traded derivatives FIA Professional Client Agreement FIA Cleared All Listed futures & options Yes. Yes.
Securities financing GMRA/MRA
GMSLA/MLSA
ICMA
ISLA
OTC Bonds
Equities
Repos
Securities lending
Yes. Yes.
Prime brokerage Prime brokerage agreement Prime broker OTC Equities, fixed income, FX Margin lending, Securities financing, ETD Yes. Yes: Master netting agreement.
Commodities Various commodity masters Industry bodies OTC Physical commodities, metals Spot and forward Yes. Yes.
Energy EFET Master Agreement
Grid Trade Master Agreement
NAESB Master Agreement
EFET
FIA
NAESB
OTC Power, gas, emission allowances Spot and forward Yes. Yes.
Oil/Freight BP/Shell T&Cs
BIMCO
BP/Shell
BIMCO
OTC Oil, freight Spot and forward No. No.
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The capital markets are strewn with different master trading agreements covering different asset classes and trading arrangements. Depending on what you want to trade, and with whom, there are all kinds of different master agreements, so as a basic service — E&OE as always — we herewith, in the panel, we set them out in their basic shape and form. In the premium content section we will look a bit more closely at how they do interact, when they do not, what there is to be said for rolling up all transactions into a single single agreement, what do to about free radicals and light brown floaters, and how one should navigate this thicket of conflicting terms.

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See also

References