Key Implications Of The "ISDA August 2012 Dodd-Frank Protocol" For Corporate End-Users

In the effort to implement the far-reaching restructuring of the over-the-counter derivatives market contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"),¹ two particular developments currently stand out for corporate end-users. First, the opening of the International Swaps and Derivatives Association's ("ISDA") DF Protocol (the "Protocol") on August 13, 2012;² second, the rapidly approaching deadline for an end-user to determine whether it will elect to avail itself of the commercial end-user exception³ to the Commodity Futures Trading Commission's ("CFTC") requirement for the mandatory clearing of swaps.

This memorandum is limited in scope and provides a brief overview of the Protocol to assist corporate end-users in deciding whether to adhere to the Protocol. We will provide a similar overview of the end-user exception in a subsequent memorandum.