ISDA Publishes 2005 Inflation Derivatives Definitions.

BARCELONA, Spain -- The International Swaps and Derivatives Association (ISDA) announced publication of the 2005 ISDA Inflation Derivatives Definitions at its 20th Annual General Meeting in Barcelona today.

The Definitions provide uniform index descriptions for the major global consumer price indices and fallback provisions in the event of a delay or disruption in publication of one of those indices. Wherever possible, the fallbacks reference the actions taken under the related inflation-linked bond in the event of a delay or cessation of publication. In these events, the calculation agent will take the same action to determine the substitute index level for the affected payment day as that taken under the related bond. Where there is no related bond, the Definitions provide a formula for calculating the missing index level, or, where an index has ceased to publish, provide methodology for a calculation agent to determine the appropriate successor index.

"The Inflation Derivatives Definitions will help the market by providing a mechanism that mirrors the behavior of the underlying inflation-linked bond and by removing any potential mismatch in market practice," said Bob Pickel, Chief Executive Officer and Executive Director of ISDA. "They will therefore provide greater certainty and clarity for all participants in this burgeoning marketplace and facilitate continued strong growth."

Activity in inflation-linked derivatives has been in existence since the mid-1990s, and has grown exponentially in the past several years. According to figures in use by market participants, size of this activity is now estimated to total $98 billion in notional outstanding volume, a ten-fold growth rate in the past two years.

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 625 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.