ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Wednesday, May 7, 2003

For More Information, Please Contact:

Louise Marshall, ISDA New York, (212) 901-6000 Fax (212) 901-6001 lmarshall@isda.org

ISDA White Paper Highlights Efforts to Restore Confidence

in Energy Trading Market

NEW YORK, May 7, 2003 - The International Swaps and Derivatives Association (ISDA) today released a white paper analyzing the recent loss in confidence in the energy trading business and efforts to restore that confidence. The paper, titled ‘Restoring Confidence in the U.S. Energy Trading Market’, explains how energy consumers and producers benefit from the application of derivatives and other risk management tools to energy markets. It also shows, however, how rapid growth, inadequate credit analysis, flawed risk management, unevenly executed deregulation, and the bankruptcy of Enron, helped lead to depleted confidence. In considering the future, the report highlights the initiatives being implemented to improve energy trading practices and restore confidence in energy markets.

“Despite many setbacks, the energy markets have proved resilient,” said Robert G. Pickel, Executive Director and Chief Executive Officer of ISDA. “Efforts on the part of market participants, as highlighted in the report, will serve to strengthen energy trading and help restore a thriving and liquid market.”

The paper identifies the regulatory framework (enhanced by the Commodity Futures Modernization Act), comprehensive documentation and use of credit derivatives as effective in countering the fallout from market events. In addition to stressing the need for improved risk management at firms, the paper advocates improvements in bankruptcy laws as the appropriate regulatory response.

The paper is available at ISDA’s web site (www.isda.org).

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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