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INTERNATIONAL SWAP DEALERS ASSOCIATION STATEMENT ON HOUSE/SENATE AGREEMENT

 INTERNATIONAL SWAP DEALERS ASSOCIATION STATEMENT ON HOUSE/SENATE
 AGREEMENT
 NEW YORK, Sept. 25 /PRNewswire/ -- The International Swap Dealers Association issued the following statement today, in response to the agreement reached by House-Senate conferees on a conference report regarding the swaps provisions of S207/HR707:
 "The agreement is an important step in reducing risk to the financial system, as it gives the Commodity Futures Trading Commission the power to eliminate legal risks associated with swaps in the U.S.," said Mark C. Brickell, of J.P. Morgan & Co., an ISDA director, and co- chairman of the Association's Regulation and Risk Mitigation Committee.
 "The House-Senate conferees 'expect and strongly encourage' the CFTC to act promptly to exempt swaps from the provisions of the Commodities Exchange Act. Courts will not be able to call into question the substantial financial commitments that exist under swaps agreements on the grounds that they are unenforceable, off-exchange futures contracts," he said.
 "The concerted efforts, over a 4-1/2 year period, of Chairman Gramm and the CFTC, ISDA members, and users of swaps, have resulted in a bill that greatly improves the legal framework for an important area of financial innovation," Mr. Brickell said.
 "Resolving this aspect of the legal certainty of swaps in the U.S. has been a key ISDA initiative for the past four years," said Malcolm Basing, ISDA chairman and managing director, Swiss Bank Corp. "It is part of ISDA's continuing effort to identify sources of risk in swaps, and take effective action to reduce them."
 Bradley P. Ziff, ISDA executive director, said: "The benefits that this bill poses to a wide variety of swap counterparties is substantial. Swap dealers benefit from reduced legal risk, and so do a steadily increasing number of swap users -- including sovereigns, government entities, major corporations and financial institutions."
 ISDA is an international group of commercial, investment and merchant banks and others active in swap transactions. Founded in 1985 to promote practices conducive to the efficient conduct of the business of its members and to carry on a dialogue with regulators, it includes over 140 primary and associate members worldwide. ISDA's executive offices are in New York.
 -0- 9/25/92
 /CONTACT: Bradley P. Ziff, executive director of ISDA, 212-332-1200; or Steven Kennedy or Pen Pendleton of Dewe Rogerson, 212-688-6840, for ISDA/ CO: International Swap Dealers Association ST: New York IN: FIN SU: LEG


GK-LR -- NY046 -- 3564 09/25/92 14:34 EDT
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Publication:PR Newswire
Date:Sep 25, 1992
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