The Master Securities Loan Agreement (MSLA) is an important legal document in the securities lending industry. A revised version of the agreement was released in 2017, and it contains significant updates to reflect changes in the industry and in regulatory requirements.

The MSLA is a standard agreement used between parties who engage in securities lending. It outlines the terms and conditions of the lending arrangement, including the securities being lent, the fees and interest rates, and the various rights and obligations of the parties involved.

One of the key updates in the 2017 version of the MSLA is its treatment of collateral. Following the financial crisis of 2008, there has been a significant push to increase the amount of collateral held in securities lending transactions. The new MSLA reflects this by providing more detailed provisions for the collateralization of loans and the use of margin.

Another major change is the inclusion of provisions for the use of electronic platforms in securities lending transactions. As more and more transactions are conducted electronically, the new MSLA provides guidance on how such transactions should be conducted and documented.

Other updates include changes to the treatment of interest rates, fees, and indemnification provisions. The new MSLA also includes more detailed provisions for the transfer of securities, as well as guidance on how to handle disputes between parties.

Overall, the 2017 version of the Master Securities Loan Agreement is an important update that reflects the changing landscape of the securities lending industry. If you are involved in securities lending, it is important to review and understand the provisions of this agreement to ensure that your transactions are conducted in compliance with regulatory requirements and industry best practices.