Sullivan Contributes to First Rulebook for Marco Polo's Payment Commitment Trade Finance Solution
International law firm Sullivan has acted as English law legal advisers to renowned trade finance institutions including Commerzbank, LBBW, SMBC, IsBank, Crédit Agricole, BNPP,
S-Servicepartner and Intesa coordinated by TradeIX and facilitated by the International Trade & Forfaiting Association (ITFA), who have designed and released the first rulebook for Marco Polo’s Payment Commitment Trade Finance solution.
The new trade finance instrument, Irrevocable Payment Commitment (IPC), introduced earlier this year and offered by the Marco Polo Network, secures payments against the successful matching of digital trade data.
The Marco Polo Rulebook for Payment Commitment provides a legal framework for the creation of IPCs using the Marco Polo Payment Commitment Module.
This is not only an important milestone for the network and its members, but also an opportunity to build on existing trade disciplines and global standards in order to fully realise the benefits of digitalisation and paperless trade.
The members of the Marco Polo Network anticipate that the rule book, together with this technology solution, will give corporate clients access to wider ecosystems in trade finance and working capital solutions.
Dani Cotti, Managing Director, Center of Excellence, Banking & Trade, Marco Polo Network, commented: "We came together with the various Marco Polo members to lay the foundation of the legal framework. This exemplifies the unique principles within the Marco Polo Network rooted in collaboration and in collective innovation."
Geoffrey Wynne, head of the London office of Sullivan and of the firm’s trade and finance practice, added: "Based on our previous work with irrevocable payment undertakings, Sullivan was approached by ITFA and TradeIX to help create the legal basis for this concept, known as the Irrevocable Payment Commitment (IPC), to work on the Marco Polo Platform. This is another example of how to move forward with digital trade transactions and we were delighted to have been part of the team."
Sullivan & Worcester (Sullivan) is a leading AmLaw 200 law firm. With over 200 attorneys in Boston, London, New York, Tel Aviv and Washington, DC, they guide organizations that are rewriting the rules. Sullivan’s clients, including Fortune 500 companies and emerging businesses, rely on Sullivan’s strategic vision, comfort with complexity and intense focus on results. As a global law firm, Sullivan’s reach extends beyond the United States. Sullivan has represented clients around the world and has a deep bench for working on a variety of matters and issues affecting clients globally.
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