ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

MEDIA ADVISORY

For Immediate Release Thursday, September 8, 2005

For More Information, Please Contact:

Susan Hartzell, Kennedy & Company, (914) 961-2436, x15; susan@kennedycom.com

ISDA TESTIFIES BEFORE THE U.S. SENATE BANKING COMMITTEE:

NO NEED TO CHANGE CFMA

Washington, D.C., Thursday, September 8, 2005 – In testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs today, the International Swaps and Derivatives Association (ISDA) emphasizes its position that there is no compelling need to make substantive changes to those portions of the Commodity Futures Modernization Act (CFMA) governing OTC derivatives.

The Committee’s hearing will review legislation to reauthorize the Commodity Futures Trading Commission (CFTC). The CFTC administers the Commodity Exchange Act (CEA), which Congress substantially amended in the Commodity Futures Modernization Act of 2000 (CFMA).

ISDA’s principal interests in the CFMA are those provisions of the legislation intended to provide legal certainty for OTC derivatives. In his testimony, Robert Pickel, Chief Executive Officer and Executive Director of ISDA, asserts that since 2000, Congress achieved its objective of providing legal certainty and regulatory clarity for OTC derivatives in a manner that has reduced systematic risk and encouraged financial innovation.

Mr. Pickel also states that the CFMA has been a broad-based success for capital markets. He commends the CFTC for the effective manner in which it has implemented the CFMA in accordance with the long-standing policies of Congress and key financial regulators that OTC derivatives are not appropriately regulated under the CEA as futures contracts.

Regarding proposals for Congress to utilize the reauthorization process as a vehicle for amending the CFMA, Mr. Pickel urges the Committee to adopt a cautious approach. In particular, he states that proposed amendments that seek to address the U.S. Court of Appeals decision in CFTC v. Zelener are unnecessary, as existing remedies are appropriate and available, and because of the legal uncertainties that such amendments may introduce in the OTC derivatives business.

The complete text of ISDA’s testimony will be available at 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 650 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.

###