For
Immediate Release Tuesday, November 12, 2002
For More
Information, Please Contact:
Stacy Carey, ISDA
New York, (212) 901-6000; Fax (212) 901-6001; scarey@isda.org
ISDA, KEY
FINANCIAL TRADE ASSOCIATIONS PRESS
NEW YORK, Tuesday, November 12, 2002 – In a letter transmitted to the House and Senate leadership earlier today, the International Swaps and Derivatives Association (ISDA) joined with other key trade associations in urging passage prior to Congress adjourning this year of the financial contract netting provisions contained in the Bankruptcy Reform legislation.
“The time to act on these provisions is now,” said Robert G. Pickel, ISDA’s Executive Director and CEO. “The risk reduction benefits of the netting provisions are enormous and we hope that Congress will act to eliminate the legal uncertainty created by the Bankruptcy Code’s treatment of financial contracts.”
The provisions, which strengthen and clarify the enforceability of early termination and close-out netting provisions in industry standard master agreements and related collateral arrangements in U.S. insolvency proceedings, passed the House and Senate as Title IX “Financial Contract Provisions” in H.R. 333 and H.R. 420 earlier in the current Congressional session. The provisions have bipartisan support, have passed the House on at least four occasions without opposition, reflect years of work with the President’s Working Group on Financial Markets and include much needed improvement to the payment risk reduction and netting provisions of the Bankruptcy Code and bank insolvency laws.
The letter was addressed to the Speaker of the U.S. House of Representatives Dennis Hastert, Democratic Leader of the U.S. House of Representatives, Richard Gephardt, Senate Republican Leader Trent Lott and Senate Majority Leader Tom Daschle.
Other trade associations signing the letter include: American Bankers Association, ABA Securities Association, The Bond Market Association, Emerging Markets Traders Association, The Foreign Exchange Committee, Futures Industry Association, The Financial Services Roundtable, Investment Company Institute, Managed Funds Association, The New York Clearing House Association, L.L.C., The Options Clearing Corporation and the Securities Industry Association. The full text of the letter can be accessed under the What’s New Section of the ISDA web site: 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 590 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.
###