ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES
ASSOCIATION, INC.
NEWS
RELEASE
For Immediate Release, Wednesday,
June 17, 2009
For More Information, Please
Contact:
Cesaltine Gregorio, ISDA New York,
+1 212-901-6019, cgregorio@isda.org
Deirdre Leahy, ISDA New York, +1
212-901-6021, dleahy@isda.org
Donna Chan, ISDA Hong Kong, +852
2200 5906, dchan@isda.org
ISDA Supports US Administration's Objectives in Financial
Services Reform
"ISDA applauds the Administration's
goal to modernize and enhance the regulatory structure for the broader financial
services landscape, and supports the proposal’s key objectives. The Association
believes that today’s proposal, along with other initiatives already announced
by the US Treasury, provide an important framework for
financial regulatory reform."
“The Association and our more than 800
members are gratified that these regulatory proposals acknowledge the benefits
of privately negotiated derivatives, and will continue to enable companies to
use these risk mitigation tools to manage their risks. We intend to continue
our dialogue with the Administration, Congress and regulators to ensure that
companies have the ability to custom tailor risk management solutions to meet
their individual needs."
"At the same time, ISDA remains committed to helping develop
an appropriate and resilient regulatory framework for global financial activity.
We
recognize that the industry today faces significant challenges, and we are
urgently moving forward with new solutions. Towards this end, ISDA supports the
appropriate regulation of financial institutions that have such a large
presence in the financial system that their failure could cause systemic
concerns."
“In addition, ISDA and the industry
support initiatives for improving transparency that would provide policymakers
with the information they need to carry out their authorities under the
law. This new
framework calls for trades to be cleared or, if not cleared, to be reported
to a trade repository."
“Finally,
the Association and our members also continue to make significant progress on a
range of initiatives designed to strengthen the industry’s infrastructure. This
includes: standardization of trading terms; improvements in the trade
settlement process; greater clarity in the settlement of defaults; and a more
open industry governance structure.”
Mr
Pickel has emphasized the beneficial role that privately negotiated derivatives
play in the global economy and for individual companies in testimony before the
US House and Senate. This testimony also
describes the robust infrastructure that ISDA and industry participants have
developed and continue to reinforce. Details
of the Association’s and the industry’s efforts, a detailed summary of
regulatory commitments and copies of Mr Pickel's testimony are all available at
the Association's website: www.isda.org.
About ISDA
ISDA, which represents participants
in the privately negotiated derivatives industry, is among the world’s largest
global financial trade associations as measured by number of member firms. ISDA
was chartered in 1985, and today has over 830 member institutions from 57
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
and Derivatives Association, Inc.