The Public Securities Association has created a master agreement for conducting forward transactions in the mortgage-backed and asset-backed markets, the trade association said.

The agreement provides a basic contractual framework for documenting forward and other delayed-delivery transactions in the $1.6 trillion mortgage securities market and $200 billion asset-backed market.

PSA member firms are to receive the nine-page document this week. It aims to standardize practices in the fixed-income markets. Member firms may adopt the new standard on a voluntary basis.

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