For Immediate Release
Monday, June 17, 2002
For More Information, Please Contact:
Stacy Carey, ISDA New York, (212) 901-6000; Fax (212)
901-6001; scarey@isda.org
“ISDA
has supported limited revision to the ISD,” said Mark Harding, Chairman of ISDA’s European Regulatory Committee and Partner, Clifford
Chance. “The Commission’s new proposal would involve an overly extensive
revision of the existing ISD,” said Harding.
Key points outlined in ISDA’s response include:
·
Supporting the
right of firms to choose between authorization as a regulated market or as an
investment firm and for the proposed abolition of the concentration rule
·
Raising concern
about the assumption apparently underlying much of the Consultation Paper that
functionally equivalent activity needs to be regulated in identical fashion no
matter who undertakes the activity
·
Highlighting the
Consultation Paper’s failure to justify the extension of pre-trade transparency
requirements, in particular to so-called “internalisers”
or to ATSs that are used wholly by professional users
or that do not have a significant volume of cash equity trading
·
Advocating that,
for commodity derivatives, the best approach would be to concentrate on the
removal of barriers to business rather than imposing a licensing requirement.
“While
we have raised a number of concerns we are, nevertheless, encouraged by many of
the changes made since the first consultation document,” said
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 575 member institutions from 44 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
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