Yes, yes. The scope of the DF protocol is limited to existing written agreements between the parties concerned, so it does not apply to undocumented swaps, unless the parties have opted for a DF agreement. Therefore, even if a party has included the provisions of the DF supplement in its existing written agreements, it should consider concluding the DF agreement so that the provisions of the complementary DF contract that it has included in such written agreements also apply to any swap it performs or may execute, which is an undocumented swap. The protocol contains the following four documents: (1) the “letter of commitment,” (2) the “questionnaire,” (3) the protocol agreement, and (4) the “DF supplement.” The protocol also includes the “DF Terms Agreement” which can be used by parties who wish to act in swaps without entering into a pre-executed master contract. The DF supplement contains some standardized presentations, confirmations, communications and agreements on the rules covered. The DF supplement consists of six calendars. Calendars 1 and 2 are automatically incorporated into the agreements recorded on the minutes by the parties that exchange questionnaires and contain assurances and commitments necessary to comply with the rules covered. Calendars 3 to 6 include certain safe ports for swap dealers, including safe ports, with respect to the requirement for the swap trader to determine the adequacy of a swap to his counterpart, a safe haven for special units with qualified independent representatives, and a safe haven based on certain representations for ERISA units and plans. Calendars 3 to 6 are optional and will only be included if both parties decide in their questionnaires. Otc derivatives transactions between traders and end-users are generally subject to Denmaster contract forms and other documents published by the International Association of Exchange and Derivatives Contracts, Inc. (ISDA), the interprofessional derivatives association. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), derivatives trading, including OTC derivatives, is regulated by the U.S. Commodity Futures Trading Commission (CFTC) and the U.S.
Securities and Exchange Commission (SEC). The CFTC has just finalized a series of derivatives rules, most of which will come into effect on January 1, 2013. The basic architecture consists of four documents, each described below: (I) a letter of loyalty, (II) the questionnaire, (III) the agreement on the protocol and (IV) the DF supplement. In addition, the DF terms agreement in a fifth document extends the fundamental architecture of the protocol to situations in which the parties wish to act in exchange without a master`s agreement being reached between them. The conditions of the DF are discussed in detail in questions 16-20 below.