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Dodd Frank Protocol Agreement

The Protocol is a multilateral contractual mechanism that allows for the review of several standardized amendments to relevant protocol agreements between two parties and the conclusion of certain new agreements between two members. It is based on the principle that the parties may agree with one or more other parties that certain conditions and provisions apply to their respective relationships (unless they expressly agree otherwise). The protocol will complement existing written agreements on the terms of one or more swap transactions. It is not limited to ISDA`s master contracts and can be used to modify all agreements between a couple of parties under which they enter into exchange contracts. The protocol also allows contracting parties to enter into an agreement on the application of certain provisions of Dodd-Frank conditionality to their trading relationships with respect to swaps that (i) are not governed by a written agreement reached at the time of the execution of the swap, which includes the terms of the parties` payment obligations with respect to that swap or (ii) agreed by the parties for compensation of a clearing organisation. (the “ISDA March 2013 DF Protocol Master Agreement”). On December 18, 2012, the CFTC introduced interim final rules for swap contracts and key swap participants and extended the compliance date from January 1, 2013 to May 1, 2013 for the various external behaviour provisions under the ISDA August D-F protocol. In addition, the provisional final rules extend the deadlines for compliance with the Commission`s portfolio coordination and swap trade relations documentation until 1 July 2013 (the documentary changes required by these rules will be included in a second ISDA protocol to be published shortly). This relief was brought with the hope and understanding that the industry will continue to rely on it. In this context, we encourage market participants to comply with the ISDA August D-F protocol and to make questionnaires available to counterparties in a timely manner before the compliance deadline of May 1, 2013. In order to help SDs/MSPs and their counterparts comply with STRD rules, ISDA has developed a relatively effective approach to complement existing documentation to ensure compliance with STRD rules to minimize market disruptions.