NEW YORK, December 11, 2000 - The International Swaps and Derivatives Association (ISDA) today welcomed the passage of landmark legislation by the U.S. Congress, providing legal certainty to the OTC derivatives markets. "Passage of this legislation secures legal certainty for OTC derivatives transactions and permits future market innovation and competition," said Richard E. Grove, ISDA's Chief Executive Officer and Executive Director. "Enactment of H.R. 5660 ends a decade of debate concerning the status of swaps transactions under the CEA in a positive manner."

H.R. 5660, the Commodity Futures Modernization Act of 2000, provides legal certainty that swap transactions will continue to be enforceable in accordance with their terms. The legal certainty afforded through various exclusions and exemptions applies to financial commodities such as interest rate and foreign currency swaps, in addition to swaps based on energy and metals.

"Our financial markets are in a better place because of the leadership of this Congress and the President's Working Group on Financial Markets," said Grove. ISDA lauds the U.S. Treasury Department, the Commodity Futures Trading Commission, the Securities and Exchange Commission and the Federal Reserve Board for identifying solutions and providing the framework that resulted in today's legislation. The legal certainty provisions of H.R. 5660 are based on recommendations made by the President's Working Group in its 1999 Report on Over-the-Counter Derivatives Markets and the Commodity Exchange Act.

According to Grove, the key members of the 106th Congress instrumental in enacting the legislation deserve particular commendation. "Passage of this legislation clearly illustrates government responsiveness to the changing market place," he said.

^® ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.