Many bulk transactions are subject to time and legal constraints that can complicate the implementation of appropriate contractual conditions. This model will help streamline agreements and improve the profitability and time of bulk transactions, which Dealogic says posted their highest levels since the beginning of the year in 2013. “The challenge now is to get the message out to the market and we are confident that over time, market participants will benefit significantly from using model agreements.” The Association for Financial Markets in Europe (AFME) has introduced Model Block Trade Agreements for bulk transactions in Europe, the Middle East and Africa (EMEA), which occur when banks present themselves as agents with or without backstop and procure buyers to buy listed shares at a discount from selling shareholders.  Between January 1, 2013 and September 13, 27, 2013, $69 billion in bulk transactions took place, compared to $62.7 billion in transactions over the whole of 2012 (Source: Dealogic) Two versions of the AFME Model Block Trade Agreement are available: one is an outright agency agreement, without backstop-underwriting obligation, and the second version contains a backstop subscription obligation. to provide a seller with a fixed, hard-subscribed minimum price at which he monetizes the shares sold. “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 conditions allowing negotiations to focus on important business concepts such as the level and structure of commissions. Over the past 18 months, AFME has developed the Model Agreements in response to requests from stock market participants to carry out these transactions quickly and in consultation with its member banks and more than 20 international law firms involved in EMEA stock market transactions. “Using model agreements for bulk transactions saves intermediaries and sellers a lot of time and costs. Bill Ferrari, Managing Director of AFME`s Equity Capital Markets Division, commented:.