On December 18, 2012 the CFTC provided interim final rules for swap dealers and major swap participants, extending the compliance date for various External Business Conduct provisions covered by the ISDA August D-F Protocol from January 1, 2013 until May 1, 2013. In addition, the interim final rules extend until July 1, 2013 the compliance dates for Commission regulations related to portfolio reconciliation and swap trading relationship documentation (documentation changes required by these rules will be contained in a second, soon to be published ISDA protocol). This relief has been given with the expectation and understanding that the industry will continue to diligently pursue readiness. With that in mind, we encourage market participants to adhere to the ISDA August D-F Protocol and provide questionnaires to counterparties well in advance of the May 1, 2013 compliance deadline.
The ISDA August 2012 D-F Protocol (the “DF Protocol”) is part of ISDA’s Dodd-Frank Documentation Initiative aimed at assisting the industry in implementing and complying with the regulatory requirements imposed under Title VII of the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). In order to facilitate implementation of Dodd-Frank rulemakings, ISDA plans to launch future Protocols to simplify documentation changes for upcoming CFTC and SEC final rules, as well as changes under EMIR, MiFiD and MiFIR.
The DF Protocol is the first of these planned Protocols and is intended to facilitate industry compliance with seven final rulemakings by allowing market participants to (i) supplement the terms of existing master agreements under which parties may execute Swaps or (ii) enter into an agreement to apply selected Dodd-Frank compliance provisions to their trading relationship in respect of Swaps. The DF Protocol adds notices, representations and covenants responsive to Dodd-Frank requirements that must be satisfied at or prior to the time that Swap transactions are offered and executed. Also, the DF Protocol includes additional bilateral delivery requirements, including a Questionnaire, to facilitate compliance with “know your counterparty” information requirements under Dodd-Frank.
Please refer to the "Frequently Asked Questions" below for more information on the Protocol’s substance.
The Protocol is open to ISDA members and non-members. Parties will pay a one-time fee of $500 to ISDA to adhere to the Protocol. The Protocol opened on August 13, 2012 and there is no cut-off date to this Protocol. ISDA does, however, reserve the right to designate a cut-off date by giving 30 days notice on this site.
Click here for a step-by-step guide to adherence to the ISDA August 2012 DF Protocol.
Following are ANNOTATED versions of ISDA August 2012 DF Protocol Documentation below: Protocol Agreement, Supplement, Terms Agreement, Addendum I, Addendum II, Questionnaire.