The basic architecture consists of four documents, each described as described below: (I) a letter of compliance, (II) the questionnaire, (III) the Memorandum of Understanding and (IV) the DF supplement. In addition, a fifth document, the agreement on the terms of the DF, extends the basic architecture of the protocol to situations in which the parties may wish to exchange without benefiting from a pre-executed framework agreement between them. The agreement on the terms of the DF is explained in detail in questions 16 to 20 below. In addition to a letter of adhesion and a questionnaire, the basic architecture of the DF protocols includes a memorandum of understanding and a DF supplement. The Memorandum of Understanding is the basic document that establishes an agreed procedure for amending swap agreements between eligible parties or, in the case of the August Memorandum, concluding an agreement on the terms of the SDF (see below). The DF Addendum contains certain declarations, confirmations, notifications and standard agreements relating to the relevant regulatory requirements. For the August Protocol, an agreement on the terms of the DF can be used in cases where participants wish to apply certain provisions of the DF Supplement to their swap operations without necessarily having a pre-signed ISDA framework agreement between them. [2] Rule 23.504(b)(4)(i) of the TCRC (requires that documentation between DSS and other DSDs/MSPs, financial institutions and other parties requesting such documentation include an agreement on the process for determining the value of each swap “at any time” during the term of the swap in order to meet relevant margin and risk management requirements). DF 2.0 allows market participants to (i) supplement the terms of existing ISDA framework agreements or (ii) enter into an agreement to apply certain Dodd-Frank compliance provisions to their swap business relationships, including but not limited to the terms of payment obligations or an agreement between the parties to clear certain swap transactions. DF protocols are designed to allow swap participants to apply certain compliance provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) to their swap business relationship. DF logs add notices, representations, and commitments that meet Dodd-Frank`s requirements and must be met at or before swap transactions are offered and executed. DF protocols are not limited to ISDA framework agreements and can be used to modify any agreement between two market participants under which they enter into swaps. To enable DSOs to comply, counterparties are encouraged to make changes to their swap arrangements and to provide certain additional information and assurances.

As mentioned earlier, compliance can be achieved by complying with the August Protocol or by entering into bilateral amendment agreements that comply with regulatory requirements. If a counterparty chooses to comply with the August Protocol, the questionnaire required as part of the process will include statements from the respective adhering party on its legal status (e.g. B eligible contractor, DS, MSP, special entity, commodity pool, etc.) and some “Know your counterpart” information. The questionnaire also allows the acceding Party concerned to choose which of the six lists contained in supplement DF to the August Protocol will be included in the relevant agreement. Taking into account the deadline of 1. In May 2013 and expecting that it will take some time for one party to review and complete the questionnaire, interested parties are invited to complete the accession process as soon as possible. The external rules set a new regulatory standard that governs the use and disclosure of “material confidential information” that a counterparty makes available to a swap dealer, subject to a restriction that expressly allows the parties to establish another standard by agreement. Prior to the establishment of this regulatory standard, swap counterparties often addressed similar issues through non-disclosure agreements. Therefore, if the parties have agreed to the restrictions and have authorized the use of this information by prior agreement, the Protocol will be moved to such an agreement. Since previous agreements were not formulated to meet the requirements of the rules of conduct of external affairs to determine the permitted use of important confidential information, section 2.14 “introduces” these agreements into the new regulatory environment by providing that information falling within the scope of the original agreement will continue to be subject to the terms of that agreement as set out in the law. The context in which it was negotiated can be read.

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