ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Monday, July 15, 2002

For More Information, Please Contact:

Stacy Carey, ISDA New York, (212) 901-6011; Fax (212) 901-6001; scarey@isda.org

ISDA Supports Brazilian Netting Regulations

NEW YORK, Monday, July 15, 2002 – The International Swaps and Derivatives Association (“ISDA”) issued comments supporting the Central Bank of Brazil’s draft resolution implementing provisions of Article 30 of the Provisional Measure No. 2192-70 relating to close-out netting of financial transactions in Brazil.

“The Central Bank of Brazil is to be commended for publishing this proposed regulation that can provide greater legal certainty in the Brazilian derivatives markets,” said Diane Genova, Managing Director & Associate General Counsel J.P. Morgan Chase & Company, Co-Chair of the Latin America Committee and ISDA Board Member. “Article 30 will facilitate cross-border transactions in this important market.”

On June 13, 2002, the Brazilian Central Bank published Article 30 for public comment. A congressional amendment, Article 30 of the Provisional Measure was granted the effect of law in September 2001 and intends to ensure the validity of netting and close-out of obligations under financial transactions agreements including in bankruptcy.

Developments relating to these netting regulations, the use of derivatives in Brazil and the ISDA Master Agreement are some of the many subjects to be discussed at ISDA’s Fundamentals of ISDA Documentation Conference on August 6, 2002 at the Hotel Inter-Continental in Sao Paulo, Brazil. For further information relating to this conference, please contact ISDA’s conference department at confregistration@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 575 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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