Master Securities Forward Transaction Agreements

The Master Securities Forward Transaction Agreement (the “MSFTA”) is a master agreement enabling the purchase and sale of forward and other delayed delivery securities. The first version of the MSFTA was published by the Securities Industry Financial Market Association (“SIFMA”) in 1996. In 2012, SIFMA, with input from market participants, published a new version of the MSFTA which has supplanted the 1996 agreement. The 2012 version includes mutual margining provisions in the body of the agreement.

With a scheduled compliance date of May 22, 2024 for the FINRA 4210 amendments requiring the posting of margin with respect to certain forward transactions, we continue to negotiate many MSFTAs.

• FINRA Rule 4210 Compliance Readiness and MSFTA Negotiation for U.S. Public Pension Plans
• Overview of Forward Settling Securities Transactions and the Master Securities Forward Transaction Agreement (“MSFTA”)
• Drafting Guide Annex I to the Master Securities Forward Transaction Agreement (the “MSFTA”)
• Drafting Guide Form of Amendment to Master Securities Forward Transaction Agreement to Conform with FINRA 4210 (the “4210 Amendment”)