Yesterday, the LSTA released drafts of the LSTA trading documents to be used in connection with the new Primary Delayed Compensation Protocol. Below, please find links to the clean drafts and blacklines marking the changes to the current versions of the Par/Near Par Trade Confirmation and Standard Terms and Conditions for Par/Near Par Trades.
The Protocol applies to a “Primary Allocation” which is an allocation of new money by a syndicate desk in connection with either (i) a new issue syndication or (ii) an amendment of an existing Credit Agreement. In addition, the Protocol affects when-issued secondary trades by (i) changing what constitutes an Early Day Trade and (ii) […]
If you are looking for artwork that would both decorate your office space and also would help implement the new Primary Delayed Compensation Protocol, look no further! The LSTA has developed flowcharts focusing on Primary Allocations, Early Day Trades and Post Funding Trades that illustrate how Delayed Compensation is to be applied on a step-by-step basis. And if a picture is not necessarily worth a thousand words, we’ve also provided the Primary Delayed Compensation Protocol together with a Glossary of Terms.
An essential part of the LSTA’s proposed “primary delayed compensation” regime is the requirement that agent banks and primary lenders complete all “onboarding requirements” in a timely manner.Given current loan market practices, which seem to be inconsistent and indeed onerous, often far exceeding what is required under US law, this may prove challenging for many loan market participants, as became apparent during the KYC panel, “Know Your Customer – Preferable Before the Ready Date” at the LSTA’s Operations Conference in NYC on April 9th.
Who is CECL and why is everyone talking about him? This week, we explain all. On Tuesday, the LSTA hosted a webinar on the new Current Expected Credit Losses (“CECL”) accounting standard which goes into effect beginning in 2020 for public business entity SEC filers and 2021 for non-SEC filers. Why should you care? The new standard will change the way banks and other financial institutions account for expected credit losses.
CECL is the acronym du jour. But what is it, what will it mean for loans and what is the LSTA doing? We discuss all below.
After much review and analysis by an LSTA Working Group, Markit Entity Identifier (“MEI”) Guidelines were published this week to clarify when an “MEI” will (and will not) be issued by IHS Markit to loan market participants.
In order to target, build and achieve greater operational efficiency for the loan market, and to have a better understanding of our members’ views on position reconciliation, FpML messaging, blockchain/distributed ledger technology, the LSTA, together with a small group of members representing dealers and buy-side institutions, put together an Operations Industry Initiatives Survey. 92 LSTA members completed the survey.
The LSTA’s big story of 2016 centered on the new Delayed Compensation Standard that went live in September. So in this review, the Market Data and Analysis team wanted to spend all our time on settlement metrics which, after four months of data, look much improved. (Kudos to all those who’ve borne the brunt of change!) But first, let’s put today’s figures in historical perspective.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.