Secondary debt trading—completing the trade confirmation
Secondary debt trading—completing the trade confirmation

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Secondary debt trading—completing the trade confirmation
  • Form of LMA trade confirmations
  • LMA Trade Confirmation (Bank Debt)
  • LMA Trade Confirmation (Claims)
  • LMA Trade Confirmation (Risk participation)

The majority of secondary debt trades are conducted by telephone or by email. Following the trade call or email exchange, the parties will document the terms of the trade in a trade confirmation. For more information, see Practice Note: Secondary debt trading—timeline of a typical trade.

This Practice Note assumes that the parties to the secondary debt trade have agreed that the trade will be documented using the Loan Market Association (LMA) suite of recommended form of documents for secondary debt trading, which includes recommended forms of trade confirmations. For more information, see Practice Note: Overview of the key documentation in a typical secondary debt trade.

Each LMA trade confirmation is intended to be used in conjunction with the LMA Standard Terms and Conditions for Par and Distressed Trade Transactions (Bank Debt/Claims) which are applicable at the time of the relevant trade (the LMA Standard Terms and Conditions) and states at the top that the confirmation incorporates the LMA Standard Terms and Conditions—the LMA suite of documents assumes that this would have been agreed when the trade was conducted.

For more information on the LMA Standard Terms and Conditions, see Practice Note: Key provisions in the LMA standard terms and conditions for secondary debt trading.

It is important to note that the point at which the trade comes into effect is upon the