ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Wednesday, April 9, 2003

For More Information, Please Contact:

Louise Marshall, ISDA Tokyo, 813.3943.7839; Fax 813.3943.7819; lmarshall@isda.org

Or Jennifer Iannibelli, Kennedy & Company New York 914.961.2436; Fax 914.961.2476; jennifer@kennedycom.com

ISDA 2003 MARGIN SURVEY REPORTS $719 BILLION OF COLLATERAL IN USE; 70% INCREASE OVER 2002 LEVELS

TOKYO, JAPAN WEDNESDAY APRIL 9, 2003 -- Collateral use in privately negotiated derivatives transactions and related margined activities continues to grow significantly, as the amount of collateral in circulation exceeds $719 billion. The International Swaps and Derivatives Association today previewed these headline figures from its 2003 ISDA Margin Survey at the 18th ISDA Annual General Meeting, held in Tokyo. The results of the Survey highlight a 70 percent increase over the $437 billion of collateral in circulation reported in the 2002 Survey.

The increase is largely attributable to the increase in number of agreements subject to collateralization, the effect of market movement with existing trading relationships, as well as better response from reporting institutions, according to collateral market practitioners.

“The growth in collateral use demonstrates the commitment of derivatives dealers and end-users to effectively manage counterparty credit exposures,” said Robert Pickel, ISDA’s Executive Director and Chief Executive Officer.”

Of the 73 firms responding to the 2003 Survey, 59 are banks, 11 are broker-dealers, 2 are energy firms and one is an insurance company. There was also strong representation from Japanese institutions, of which 12 responded. Survey respondents reported over 38,500 collateral agreements in place, compared with 28,000 in the 2002 Survey and 16,000 in the 2001 Survey. Credit risk reduction continues to be the principal reason cited to use collateral, followed by regulatory capital savings. Other factors include access to more complex trades and the ability to price more competitively. Respondents in this year’s Survey forecasted further growth in collateral agreements of 22 percent during 2003. Respondents further report that collateral covers 55 percent of fixed income derivatives trade volume and 51% percent of counterparty credit exposure.

The complete results of the 2003 ISDA Margin Survey will be available in May.

About ISDA

ISDA is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 590 member institutions from 46 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.

^®ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.

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