While most of the rules adopted as a result of Dodd-Frank apply to U.S. SDs and MSMs (and are in fact intended to benefit their counterparties and not impose direct administrative burdens on them), some rules also apply to Canadian market participants who do not necessarily trade or speculate on swaps, but are rather counterparties that enter into swap arrangements as a means of hedging commercial or investment risks. To enable SDs to comply with the management rules in accordance with the August Protocol, including the confirmation of counterparty eligibility standards and the determination of the availability of „safe spheres“, SDs require all Canadian counterparties to provide them with certain information and assurances by May 1, 2013. To comply with the rules of management of companies, SDs can only conclude swap transactions with counterparties that have provided the necessary information and assurances. Therefore, the ISDA framework contracts provided by the SDs increasingly contained provisions such as: unlike previous ISDA protocols, for which amendments or additions were made exclusively by the notification by each party of a letter of compliance with the underlying document to be amended (i.e. a framework agreement), this protocol contains additional bilateral delivery requirements for the addition of For more information on delivery requirements, see 5.Q below. Each Party depositing a letter of adhesion shall also send a completed questionnaire to another participant in the Protocol, so that the addition of additional conditions in respect of this Participant in the Protocol is effective. As a result of these additional bilateral delivery requirements, ISDA and Markit have developed a technology-based solution („ISDA Amend“) to automate the information collection process and enable the exchange of data and documents transmitted to eligible counterparties (see 6.Q below for more information). ISDA Amend is available under www.markit.com/en/products/distribution/document-exchange/registration.page. The External Management Rules set a new regulatory standard governing the use and disclosure of „essential confidential information“ transmitted by a counterparty to an exchanger, subject to a restriction that expressly allows the parties to establish an alternative standard by agreement.

Prior to the introduction of this regulatory standard, swap counterparties often dealt with similar issues through confidentiality agreements. Therefore, if the parties have agreed on the restrictions and permitted uses of this information through a prior agreement, the protocol postpones such an agreement. Since previous agreements were not designed to meet the requirements of external conduct of business rules for determining the permitted use of essential confidential information, Section 2.14 `puts` those agreements in the new regulatory environment by providing that information falling within the scope of the original agreement is subject to the terms of that agreement, as read in the legal context, during which it was negotiated.. . . . . .