ISDA PRESS STATEMENT ON RELEASE OF CFTC PROPOSED REGULATORY RELIEF INITIATIVE

The International Swaps and Derivatives Association, Inc. (ISDA) welcomed the release earlier today of the proposed regulatory relief initiative by the Commodity Futures Trading Commission (CFTC). "We have followed with interest the development of these initiatives by the CFTC at the direction of its Congressional authorizing committees and we appreciate the willingness of Chairman Rainer, his fellow Commissioners and the professional staff of the CFTC to make every effort both to avoid regulatory measures that could increase legal uncertainty with respect to OTC derivatives and to explore opportunities to enhance legal certainty that are consistent with the CFTC's administrative authority under the existing provisions of the Commodity Exchange Act", said Rick Grove, ISDA's Chief Executive Officer and Executive Director.

"While the details of this comprehensive proposal will of course require further study before ISDA can comment on specific matters, we commend Chairman Rainer and his colleagues for their pursuit of this initiative", added Mr. Grove. "ISDA looks forward to continuing to participate actively in the regulatory process, and we are hopeful that the final CFTC regulatory relief structure will provide increased legal certainty for all swaps transactions, including those based on nonfinancial commodities such as energy and metals", said Mr. Grove.

Mr. Grove also noted that the CFTC's regulatory relief initiative did not lessen the need for Congressional action to modernize the Commodity Exchange Act to provide legal certainty for OTC derivatives and regulatory relief for the futures exchanges. "We are pleased that Chairman Rainer remains committed to the goal of enacting comprehensive legislation this year", concluded Mr. Grove.