ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Tuesday, May 10, 2005

For More Information Contact:

Louise Marshall, ISDA European Office:  44(0)20 7330-3550; lmarshall@isda.org

Susan Hartzell, Kennedy & Company: 914-961-2436, ext. 15; susan@kennedycom.com

 

ISDA CELEBRATES 20 YEARS AT THE FOREFRONT OF

THE PRIVATELY NEGOTIATED DERIVATIVES INDUSTRY

 

Marks Occasion with Black-Tie Ceremony in London

 

LONDON, TUESDAY, MAY 10, 2005 – The International Swaps and Derivatives Association, Inc. (ISDA) will celebrate its 20th anniversary as the trade association for the privately negotiated derivatives industry with a reception and dinner in London on Wednesday, May 11, 2005. The Natural History Museum will set the stage for the invitation-only event, which will mark the Association’s achievements over the course of its 20 years and honor all past and present directors.

 

A member-driven association that draws on the active involvement of senior industry professionals, ISDA has grown from an organization of 10 members operating out of a single office in New York, to a global association with over 625 members in 47 countries and offices in the U.S., Europe and Asia.

 

Over the past 20 years, the derivatives and risk management industry has fundamentally changed the global financial landscape. Across asset classes, industries and regions around the globe, derivatives have transformed how firms think about and manage risk. Since ISDA’s inception in 1985, the notional amount of derivatives outstanding across various asset classes has grown from approximately $100 billion to just under $200 trillion by year-end 2004.

 

Since its foundation in 1985 by a small group of swap dealers seeking to create common standards for their products, ISDA has played a vital role in facilitating the growth and success of this business. Among its key accomplishments:

 

  • Development of the ISDA Master Agreement, a milestone achievement which established international contractual standards for privately negotiated derivatives transactions;
  • Ensuring the enforceability of netting provisions and gaining acceptance for netting in the Basel capital framework;
  • Enacting legislation to ensure legal certainty for privately negotiated derivatives;
  • Developing and articulating risk management, collateral and operational best practices.

 

“With the support of its Board, its members and its staff, ISDA has been a major part of, and continues to facilitate the growth of, innovative risk management tools and practices around the world,” said Robert Pickel, CEO and Executive Director of ISDA. “What has always set ISDA apart has been the active participation of industry professionals – and this participation has enabled ISDA to become the preeminent trade association for our industry.”

 

“Without ISDA, the industry could not have become what it is today,” said Jonathan Moulds, ISDA Chairman and head of International Debt and Equity Markets at Bank of America. “As significant as the industry’s growth has been in the last two decades, its future prospects look equally promising. We look forward to continuing the important work that lies ahead for our industry and Association.”

 

ISDA was formally incorporated on May 24, 1985. The celebration in London is just one of the ways ISDA is recognizing this important milestone. A 20th anniversary web site, at www.isda.org/anniversary features some of the highlights of the growth and development of ISDA and the derivatives industry – the history, the people behind its success and the phenomenal growth in derivatives activity over the past two decades.

 

ISDA has also produced a video documentary chronicling the history of the Association and the derivatives industry. The video will premiere at the London event. A preview is available at the anniversary web site.

 

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 625 member institutions from 47 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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