For Immediate Release, Friday, September 12, 2008

For More Information, Please Contact:

Louise Marshall, ISDA New York, 212-901-6014, lmarshall@isda.org

Cesaltine Gregorio, ISDA New York, 212 901 6019, cgregorio@isda.org

ISDA TO COMPILE LIST OF FANNIE MAE, FREDDIE MAC

DELIVERABLE OBLIGATIONS TO FACILITATE

SMOOTH SETTLEMENT PROCESS

NEW YORK, Friday, September 12, 2008 - The International Swaps and Derivatives Association (ISDA) today announced that with the input of a steering committee of market participants, it is compiling a list of deliverable obligations for purposes of smooth settlement process in relation to the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Association (Freddie Mac).

ISDA expects to publish this list along with a draft protocol to facilitate settlement of credit derivative trades involving Fannie Mae and Freddie Mac, the US government sponsored entities that recently went into conservatorship, in the coming week. Due to the large number of obligations that might be identified as Deliverable Obligations for purposes of the auction settlement mechanism, ISDA and market participants believe it prudent to establish a process for identifying such deliverable obligations.

"It is critical that the determination process for deliverable obligations for Fannie Mae and Freddie Mac be comprehensive and transparent," said Robert Pickel, Executive Director and Chief Executive Officer, ISDA. "While there is an extensive range of deliverables in this instance, we are confident that in combination with the robust mechanism of the ISDA protocol procedure, the process will help facilitate a seamless settlement procedure for trades referencing the two government sponsored entities."

ISDA is actively considering with its membership a mechanism to review the deliverability of obligations of Fannie Mae and Freddie Mac that market participants (including buy- and sell-side participants) propose should be included in the CDS Auction Settlement Protocol. ISDA will devise a method for resolving any questions that may arise as to the deliverability of obligations.

The draft protocol will be available at 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 approximately 850 member institutions from 56 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.