LSTA revises loan trading confirmation forms showing oral trades as binding

By Sara Rosenberg

New York, Sept. 17 - The LSTA published revised loan trading confirmation forms under which participating parties agree to make oral trading binding and enforceable by law.

Under the new legislation, agreements related to loan trades are now "qualified financial contracts", making them exempt from the New York statute of frauds. "Enactment of the new legislation means that when agreement is reached on the phone, the law provides clear support for enforcement of that trade, so long as all material terms have been established," a news release explained.

New forms are available at http://www.lsta.org and a training session will be held on Sept. 24.

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