ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Wednesday, March 31, 2004

For More Information, Please Contact:

ISDA AGM Press Room, The Fairmont Chicago (312) 565-7961

Louise Marshall, ISDA New York, (212) 901-6000; lmarshall@isda.org

COLLATERAL USE GROWS TO $1.02 TRILLION ACCORDING TO ISDA 2004 MARGIN SURVEY; 41% INCREASE OVER 2003 LEVELS

CHICAGO, WEDNESDAY MARCH 31, 2004 - Collateral use in privately negotiated derivatives transactions and related margined activities continues to grow significantly, as the amount of collateral in circulation now totals $1.02 trillion. The International Swaps and Derivatives Association today previewed these headline figures from its 2004 ISDA Margin Survey at its 19th Annual General Meeting in Chicago. The results of the Survey highlight a 41 percent increase over the $719 billion of collateral in circulation reported in the 2003 Survey.

The number of collateral agreements grew by 29 percent. Fifty percent of all derivatives transactions, measured either by volume or by exposure, are now covered by collateral, compared to 30 percent in 2003.

"Together with the findings of our risk concentration survey, these results demonstrate the continuing commitment of market participants to identify and reduce sources of risk in the derivatives business," said Robert Pickel, ISDA's Executive Director and Chief Executive Officer. "Through its documentation and collateral committee activities, ISDA facilitates members in fulfilling their commitment."

Of the 97 firms responding to the 2004 Survey, 76 are banks, 10 are broker-dealers, and the remaining are institutional investors and end users. The number of programs that qualify as large (over 500 agreements) has grown to 16 firms in 2004, from 14 in 2003. Survey respondents reported over 54,000 collateral agreements in place, compared with 38,500 in the 2003 Survey and 28,000 in the 2002 Survey. Credit risk and economic capital reduction were the principal reason cited to use collateral, followed by the desire to free up trading lines with counterparties.

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 600 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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