Block Trade Agreement Asifma

“Using model agreements for bulk trades will save intermediaries and sellers a lot of time and costs. [1] Between January 1, 2013 and January 13, 2013. On September 1, 2013, $69 billion in block trades took place, compared to $62.7 billion in agreements in 2012 (Source: Dealogic) Two versions of the AfME model block agreement are made available: one is a non-committal agency agreement from backstop and the second version has a back-stop-underwriting commitment. to pay a seller a fixedly signed minimum price, to which he monetizes the shares sold. The Association for Financial Markets in Europe (AFME) has launched model block agreements for bulk transactions in Europe, the Middle East and Africa (EMEA) that arise when banks, with or without backstop, acquire banks as agents, with or without backstop, buy publicly traded shares with a discount to selling shareholders. “Both models are not designed to be firm forms with binding conditions or to restrict the right of the parties to negotiate the terms or forms of block agreements. However, the model offers user-friendly formulations for most standard terms that allow negotiations to focus on important trade concepts such as commission levels and structure. Craig Dally, Linklaters` corporate partner, has worked with a number of the region`s major investment banks in many of the most important block transactions and has led various sectoral reforms in the block trading area, including the implementation and revision of an interprofessional trade agreement developed with ASIFMA , the independent regional trade association that promotes the development of capital markets in Asia. He said: “The work on this transaction was particularly enjoyable, because we had the opportunity to explore the potential of these structures.” “The challenge now is to get the message out to the market, and we are confident that market participants will see significant benefits over time in the use of model agreements.” Linklaters still has the position of market leaders in consulting in block trades.