“Both models are not designed to be firm forms with binding conditions or to restrict the right of the parties to negotiate the terms or forms of block agreements. However, the model offers user-friendly formulations for most standard terms that allow negotiations to focus on important trade concepts such as commission levels and structure. “The challenge now is to get the message out to the market, and we are confident that market participants will see significant benefits over time in the use of model agreements.” The Association for Financial Markets in Europe (AFME) has launched model block agreements for bulk transactions in Europe, the Middle East and Africa (EMEA) that arise when banks, with or without backstop, acquire banks as agents, with or without backstop, buy publicly traded shares with a discount to selling shareholders. There has been a lot of talk in the Brexit debate about free trade, but what is a free trade agreement and how is it different from what the UK had with the EU? Chris Morris of Reality Check unpacks terminology. Two versions of the AfME model block agreement are made available: one is a simple agency agreement with no obligation to backstop underwriting, and the second version has incorporated a backstop underwriting commitment that offers a seller a firm and hard-signed minimum price, to which he monetizes the shares sold. [1] Between January 1, 2013 and September 13, 2013, $69 billion in bulk transactions took place, up from $62.7 billion in 2012 (source: Dealogic) AFME has developed standard agreements over the past 18 months in response to stock market participants` requests, these transactions quickly and in agreement with its member banks and 20 international law firms involved in EMEA equity transactions. “Using model agreements for bulk trades will save intermediaries and sellers a lot of time and costs. Many block trades are subject to time and legal constraints that can make it difficult to establish appropriate contractual conditions. The model will help streamline agreements, improve time and cost efficiency for bulk transactions, which Dealogic says have their highest annual values in 2013. Bill Ferrari, managing director of AFME`s Equity Capital Markets division, commented: Is the UK ready for Brexit? Video, 00:04:09Is the UK ready for Brexit?.