International financial services association BAFT (the Bankers Association for Finance & Trade), together with ITFA (the International Trade and Forfaiting Association) have published an updated New York law Master Participation Agreement (NY MPA) and associated guidelines. BAFT, together with ITFA, put together a working group of experts to review the existing form and identify changes based on current market practice.

The new NY MPA closely follows the updated English law document (published in September 2018) and is supported by a guidance note and a comparison with the pre-existing form. All the relevant documents can be found in the members’ section of the BAFT website.

The original NY MPA was drafted almost a decade ago and this is the first time it has been updated. It serves as the industry standard for secondary market transactions to facilitate the buying and selling of trade finance-related assets globally. The update assists with the standardisation of documentation for trade finance transactions to help ensure that bank clients, government bodies and investors better understand and utilise trade finance assets.

Sullivan in London and New York advised BAFT and ITFA in relation to the updated NY MPA.