The protocol provides a standardized approach to safe ports, which allows counterparties who are able to provide a comprehensive set of representations needed to determine the applicability of a secure port. The application of safe ports has full voting rights and both counterparties of a protocol protocol must accept, in their questionnaire, a safe port so that the corresponding DF timetable can be incorporated into their agreements. The protocol does not propose partial solutions for safe ports, as these partial solutions do not exclude the need for a bilateral agreement outside the protocol on whether and how a safe port should be applied. DF protocols should allow swap market participants to apply to their swap compliance provisions selected in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (« Dodd-Frank »). DF protocols add communications, insurance and agreements that meet Dodd-Frank`s requirements and must be completed at or before the date swap transactions are offered and executed. DF protocols are not limited to ISDA master contracts and can be used to modify all agreements between a pair of market players under which they enter into exchange contracts. Participants with counterparties, 77 Fed. Reg. 9734 (February 17, 2012); A swap counterparty that trades with swap traders or large swap participants may not be able to enter into new swap transactions on or after October 12, 2012, unless the counterparty has provided the necessary information to the protocol and has complied with the protocol before that date. As a result, ISDA has developed an approach to architecture and procedures based on two fundamental objectives: selective access to information (i.e. permission to see certain information) and modification of the provisions of the document to which a party is bound (either because of the nature of the counterparty or because the provisions are optional). The process as developed is necessarily more complex than the multilateral changes made by the previous ISDA protocols.
However, we believe this will reduce the need to amend documents outside the protocol process and also provide sufficient flexibility to provide additional information and take into account changes to the provisions relating to documents to which a party is bound and which may occur when additional rules are concluded. On August 13, 2012, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission published in the Federal Register their common final rule (« final rule ») that defines the term « swap » and addresses other issues.2 The final rule will come into effect on October 12, 2012. The entry into force of the final rule also has the effect of the effectiveness of some other rules previously adopted by the CFTC under the Dodd-Frank Act, including the rules described below: the protocol is intended to complement existing written agreements on the terms of one or more swap transactions. The minutes add communications, insurance and agreements that meet The Dodd-Frank requirements of Title VII and must be met at the time swap transactions are offered and executed.