Swap participants, particularly swap dealers (“SDs”) and major swap participants (“MSPs”) that are subject to CFTC’s external business con-duct rules and have adhered to the ISDA August 2012 Dodd-Frank protocol, must also adhere to the ISDA March 2013 Dodd-Frank protocol if they are using ISDA facilities to satisfy CFTC re-quirements for their future swaps transactions.
The March 2013 protocol addresses additional CFTC rule requirements concerning swaps. The date for compliance with the March 2013 protocol was July 1, 2013. Because the two protocols dif-fer, adherence to the August 2012 protocol alone will not satisfy the CFTC’s additional rule re-quirements set forth in the March 2013 protocol.
The March 2013 protocol addresses three final CFTC rules affecting swap participants that are not included in the August 2012 protocol man-dated clearing for certain classes of interest rate swaps and credit default swaps, exceptions to clearing requirements for end-users and various other requirements related to swaps documenta-tion. The March 2013 protocol provides notices, representations and covenants necessary to com-ply with the CFTC’s final rules and includes document delivery requirements, relevant ques-tionnaires, registration category guidelines and information relating to exceptions or exemptions that may be applicable. Market participants who agree to adhere to the March 2013 protocol must submit their adherence letter and one-time fee of $500 to ISDA. As with the August 2012 protocol, market participants adhering to the March 2013 protocol will have access to the ISDA Amend por-tal to exchange information and documentation with relevant counterparties. The March 2013 protocol adherence letter can be found here and additional information concerning the March 2013 protocol can be found here.