These FAQs are not intended to and do not constitute legal advice or definitive advice of any nature from FIA Tech to any party. FIA Tech encourages you to consult with your own legal counsel. These FAQs do not constitute representations or warranties of or by FIA Tech and do not in any way form part of any agreement or terms between FIA Tech and any party.
The original International Uniform EFP Transactions Agreements (“EFP Agreements”) were developed by the FIA Law and Compliance Division in consultation with the Managed Funds Association (“MFA”) and several U.S. and U.K. exchanges. The FIA Law and Compliance Division is now publishing International Uniform EFRP and Block Transactions Agreements.
What new EFRP templates are being introduced?
The FIA Law & Compliance Division has created the following six new or revised agreement templates. Two are updates based on the previously available 2017 EFPC and EFPT templates, and are available as replacements of the previous templates, and four are entirely new templates:
EFPT 2021 -- Updated 2017 EFPT (Trader) Template
EFPC 2021 -- Updated 2017 EFPC (Customer) Template
EFPBT -- New Agreement Template
EFPBDT -- New Agreement Template
EFPBDC -- New Agreement Template
EFPBC -- New Agreement Template
How are these templates different from earlier EFP agreements?
Among other things, the 2021 templates expand on the earlier EFP agreements to potentially include block trades and additional types of EFRPs, and certain of the 2021 templates include additional parties.
What is the "Broker" role in these templates?
FIA Tech is unable to advise on the role(s) of party(ies) in templates. Firms should consult with their legal counsel. We would note that a difference between certain templates may be that the FIA Law & Compliance Division contemplated Broker acting on behalf of a different party.
What is the "Dealer" role in these templates?
FIA Tech is unable to advise on the role(s) of party(ies) in templates. Firms should consult with their legal counsel. We would note that “Dealer” was a party role that existed in the 2017 EFP agreement templates.
Can I continue to use the 2017 EFPT and EFPC templates on new agreements?
With the introduction of the 2021 EFPT and EFPC Agreement Templates, the 2017 templates will no longer be available for use on new agreements. When amending current EFP agreements, firms will have the option to update to the 2021 templates, similar to the workflow provided for Standard Agreements when 2017 versions were introduced to replace 2008 versions.
Do I have to migrate current agreements to these new templates?
There is no requirement by FIA Tech for firms to modify in-place agreements. 2017 EFP templates will no longer be available in Docs for new agreements, however no changes are required by FIA Tech on existing documents. 2017 EFP templates (as well as 2008 EFP templates) will remain available on FIA's website.
How can I update my current EFP agreements to the 2021 versions?
When amending current EFP agreements, firms will have the option to update to the 2021 templates, similar to the workflow provided for Standard Agreements when 2017 versions were introduced to replace 2008 versions.
Can I use Standard Agreements to support Block/EFRP activity?
FIA Tech is unable to advise on which templates or legal language firms should use for any activity. Firms should consult with their legal counsel..
Where can I find more information about these templates?
Additional information may be found in the FIA US Documentation Library, including agreement templates, blacklined versions of the 2017 vs 2021 EFP templates, and a memo from the Law & Compliance Division regarding the template.
Slides from the March 8th and March 11th FIA-hosted webinar regarding these new templates is also available for download at the bottom of these FAQs.