ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.
MEDIA ADVISORY
For Immediate Release Thursday, March 13, 2008
For More Information, Please Contact:
Louise Marshall, ISDA New York, +1 212-901-6014, lmarshall@isda.org

Carmen Neumann, ISDA London, +44 20 3088 3554, cneumann@isda.org

ISDA RESPONDS TO TREASURY SECRETARY HENRY PAULSON’S REMARKS ON CASH SETTLEMENT MECHANISM

NEW YORK, Thursday, March 13, 2008 - Robert Pickel, Executive Director and Chief Executive Officer, International Swaps and Derivatives Association (ISDA), has made the following statement to address Treasury Secretary Henry Paulson's prepared remarks about the recommendations from the President's Working Group on Financial Markets.

“We welcome Secretary Paulson’s recognition of the value of ISDA’s cash settlement mechanism and echo his support for industry-led initiatives. The processing of privately negotiated derivatives has always been a top priority for ISDA. We are dedicated to ensuring that the powerful growth in the industry continues, and that these tools are allowed to perform their critical risk management function.”

“The cash settlement mechanism has been successfully implemented in nine events in North America. Operationally the mechanisms are in place to run serial auctions in the immediate future, if market conditions so require. To date it has not been apparent to the industry that the benefits of hardwiring the mechanism outweigh the benefits of flexibility that the current system provides. However, we are committed to continue exploring with the industry the most efficient way forward, including hardwiring the auction mechanism into relevant ISDA documentation.”

About ISDA
ISDA, which represents participants in the privately negotiated derivatives industry, is the largest global financial trade association, by number of member firms. ISDA was chartered in 1985, and today has approximately 810 member institutions from 55 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.