Probably the OP has figured this out by now, but for posterity let me explain (in the general setting of simple trace formulas, rather than the specific Deligne-Kazhdan case):
A trace formula $I(f) = J(f)$ is, crudely, an identity of a geometric distribution $I(f)$ with a spectral distribution $J(f)$. Here $f$ is a test function that will be varied and ideally both $I(f) = \prod I(f_v)$ and $J(f) = \prod J(f_v)$ are factorizable.
In simple trace formulas, one typically chooses $f_{v_1}$ at some place $v_1$. with some regular or elliptic support so that globally only regular or elliptic terms contribute to the geometric distribution $I(f)$. At another place $v_2$, one chooses $f_{v_2}$ to be a supercusp form so that $J(f)$ globally only involves only cuspidal representations. These simplifications do two major things for you:
They simplify convergence issues of $I(f)$ and $J(f)$.
They make comparisons between trace formulas on different groups easier (you only need to compare regular or elliptic geometric terms, and then you don't need to analyze continuous spectrum to deduce an equality of cuspidal spectra).
As I recall, a simple trace formula is explained in Gelbart's Lectures on the Arthur-Selberg Trace Formula.