ISDA Applauds House Action on H.R. 4541

New York, July 27, 2000 - The International Swaps and Derivatives Association, Inc. applauds the actions this week by the Committee on Banking and the Committee on Commerce of the U.S. House of Representatives in separately approving H.R. 4541, the proposed "Commodity Futures Modernization Act of 2000". H.R. 4541 was previously approved by the House Agriculture Committee.

"This important legislation will provide legal certainty for over-the-counter derivatives transactions and this will in turn reduce systematic risk and encourage financial innovation," said Richard E. Grove, ISDA's Chief Executive Officer and Executive Director. "ISDA is gratified by the positive leadership roles assumed by Chairman Leach, Chairman Bliley, Representative La Falce and Representative Dingell. We look forward to working with them and with their colleagues on the Agriculture Committee and in the House leadership to resolve those issues where the Committees took somewhat differing positions," concluded Mr. Grove.

ISDA is an international organization and its more than 480 members include the world's leading dealers in OTC derivatives transactions. ISDA's members also include many of the banks and other financial institutions, government entities, corporations and professional service providers that rely on OTC derivatives to manage their financial market risks with a degree of efficiency and effectiveness that would not otherwise be possible. Information about ISDA and its activities is available on the association's web site, www.isda.org.