Linklaters has advised the International Securities Lending Association (ISLA) on the Master Confirmation Annex (MCA) which ISLA published on 10 November 2021. This document provides a standard framework and set of terms which market participants can use for “non-standard” trade types (such as evergreens and extendables) to be documented under the Global Master Securities Lending Agreement.

The MCA was produced for ISLA members in response to feedback received via the ISLA Legal Survey 2020/21. It was developed by the ISLA Documentation Subgroup, chaired by Jamie Pullen (Director & Assistant General Counsel at Bank of America).

Pauline Ashall, Derivatives partner at Linklaters, says:

“We were pleased to work with ISLA on the MCA which we think will really help market participants to achieve greater standardisation across a range of loan types. The MCA was also drafted with digitisation in mind and therefore will help the market to gain efficiencies in terms of documentation production and data ingestion also.”

Jamie Pullen, Director & Assistant General Counsel, Bank of America, and chair of ISLA Documentation Subgroup, says:

“We were excited to work with Linklaters on this initiative given their expertise not only in respect of the form and construct of this type of document but also their experience in the LegalTech space. The MCA standardises the contractual terms of these trade types in such a way that they can work in a traditional as well as digital environment, and as such will complement well ISLA’s other recent initiatives and accomplishments.”

Tina Baker, Head of Legal Services, ISLA says:

“The publication of the MCA, following hot on the heels of the release of the ISLA Clause Library & Taxonomy is a further step along the standardisation and digitisation journey. Thanks to Linklaters and our working group members who contributed to the development of the annex.”