Sift Media oferece conteúdo original e de marca para mais de meio milhão de profissionais em contabilidade, TI, RH e outros. E treinamento, marketing e pequenas empresas. Produzindo conteúdo de qualidade e envolvendo nossos públicos profissionais em vários pontos de contato, oferecemos oportunidades exclusivas de marketing que oferecem um retorno genuíno sobre o investimento. Nossos valores Acreditamos na criação de conteúdo, permitindo conversas e conversão de oportunidades de negócios, tanto para nossos públicos de negócios como para nossos clientes de publicidade. Concentrando-nos no conteúdo e promovendo o envolvimento da comunidade, pretendemos criar ambientes confiáveis e exclusivos para marcas comerciais e profissionais de negócios para otimizar os relacionamentos. Nosso povo Nosso povo é nosso maior trunfo e temos a sorte de atrair alguns dos melhores talentos digitais do país. Com uma equipe de gerenciamento sênior hands-on, gerentes experientes de campanha e conta, editores vencedores de prêmios e uma equipe de ponta de produção e tecnologia temos uma estrutura e qualidade que nos diferencia de outras editoras. Saiba mais e conheça a equipe abaixo. Tom Dunkerley Steven Priscott Diretor Financeiro, Sift Nossa história Fundada por Andrew Gray, David Gilroy e atual CEO Ben Heald, Sift foi para oferecer serviços de informações específicas da indústria que aproveitou a internet através da integração de notícias tradicionais e conteúdo da web. Com o fundo Bens em contabilidade foi decidido que este seria o primeiro mercado para a exploração e assim em 1997 AccountingWEB. co. uk nasceu. A fórmula funcionou e, em 12 meses, a lista de circulação passou de 10 para 4.000, com receitas geradas a partir de anúncios em boletins semanais por e-mail. Sift Media agora atende mais de 700.000 profissionais de negócios registrados a cada mês e oferece mais de 5 milhões de impressões de página em toda a sua carteira de 11 títulos no Reino Unido e EUA. Não só continuamos a desenvolver algumas das comunidades de negócios online mais leais e envolvidas, oferecemos soluções de ponta para anunciantes. Para uma história mais detalhada, visite nosso site corporativo. Se você gostaria de se juntar a um dos editores UKs mais emocionante e você acredita que você tem a paixão e as habilidades para se tornar uma parte valiosa da equipe, por que não verificar as nossas vagas atuais. I8217ve ensinando golfistas de iniciantes a touring profissionais, Para amadores realizados e nosso local junior para celebridades de Hollywood. Tenho ensinado milhares de lições e ajudou todos os níveis de golfistas construir, crescer e melhorar o seu jogo de golfe por mais de 25 anos aqui em Torrey Pines, incluindo o swing total, shortgame, colocando, gestão do curso eo lado mental do jogo. Programas personalizados são oferecidos para você bater a bola mais reto e mais distante com menos golpes, mais compreensão, menos esforço e maior prazer. Chame-me na minha célula em 619-322-8333 ou preencha o meu formulário de contato para qualquer uma das suas necessidades de serviço de golfe. Eu faço uma promessa a você para fazer o meu melhor para melhorar o seu jogo global. Clique aqui para ver o meu Bio. Serviços de Lição: Todos os pacotes personalizados inclusivos, incluindo reservas avançadas, green fees, instrução, carrinho, bolas gama escolha amp de Torrey Pines North ou South Course, com qualquer Jogando Aulas ou escolas de golfe Tee vezes sem taxa de reserva avançada em Jogar aulas, E Play Package ou escolas de golfe Bolas ilimitadas em aulas particulares e escolas de golfe Análise de vídeo computador de alta tecnologia com aulas particulares, Pacotes PampP e escolas de golfe Incomparável instrução de golfe PGA com mais de 20 anos de experiência em Torrey Pines Iniciantes: Se você é um iniciante, Feminino, masculino, júnior, sénior, ou ter um handicap físico, meus serviços irão ajudá-lo a alcançar um nível de conforto com conhecimento adicional, consciência e compreensão. Ao jogar em um curso, praticando em uma escala ou em qualquer lugar na facilidade do golf o fator da intimidação será põr à vontade. Intermediários: Como um intermediário, você irá melhorar o seu conhecimento e começar a compreender o que o seu clube faz para a bola eo que o seu swing faz para o clube. Transforme o agravamento ea frustração em conhecimento e compreensão, para que você aprecie seu jogo. Jogadores Accomplished: Quanto ao jogador realizado, afinar suas habilidades e incorporar uma proficiência física e mental para elevar o seu jogo para o próximo nível. 8221 Eu tive a sorte de ter minha filha mais velha comprando um plano de instrução de 6 lições particulares de Michael Major em Torrey Pines. Como um ano quase 70 anos novo para o jogo de golfe (4-5 anos de hacking) eu queria tentar melhorar o meu jogo. Michael dedicou tempo aos fundamentos do balanço, pitching, putting, areia e técnicas básicas de melhoria. Bem, eu definitivamente melhorou em todas as áreas e viu golpes cair de minhas pontuações Não só eu observei e sinto a diferença, mas meus amigos de golfe também. Eu recomendo altamente Michael Major como um instrutor e eu sou grato para a instrução que forneceu a mim.8221 Dr. Bob Stein, notícias de San Diego do blogOne de ISDAs resistindo forças é a participação ativa de profissionais da indústria - ea perícia eo conhecimento Eles oferecem - na ampla gama de suas atividades. As comissões, grupos de trabalho e grupos de trabalho das associações operam em praticamente todos os grandes centros financeiros e desempenham um papel importante na facilitação do intercâmbio de ideias, do exame de questões políticas e do fluxo de informação entre os nossos membros. Um ano novo, um novo século e um novo milênio, não há um testemunho mais forte para a representação efetiva da indústria de derivativos e de gerenciamento de risco do que o aumento registrado em 1999. Noventa e duas organizações se juntaram à Associação no ano passado, trazendo Nossa associação a mais de 450 empresas localizadas em 36 países nos cinco continentes. O crescimento contínuo da dimensão e do escopo das Associações é especialmente notável na medida em que ocorre em um momento, e talvez como resultado, de mudanças consideráveis nos mercados financeiros globais: a introdução de novos marcos regulatórios, a revisão dos requisitos de adequação de capital , Consolidação e maior concorrência entre os participantes da indústria, incerteza econômica em regiões-chave. Em meio a esses e outros acontecimentos, o foco nítido e consistente da ISDA em sua missão central de incentivar o desenvolvimento prudente e eficiente da indústria de derivativos negociados privadamente nos permitiu continuar a fornecer valor real ao nosso círculo eleitoral global. Na área de gestão de riscos, por exemplo, estamos liderando os esforços da indústria para responder eficaz e adequadamente à iniciativa dos Comitês de Basileia para reformar o atual acordo de capital. Nossos três Grupos de Trabalho - Estrutura Conceitual, Ratings Internos e Risco Operacional - estão abordando as principais questões delineadas no Comitê de Basileia publicado em junho passado. A participação dos membros nos grupos de trabalho é substancial e generalizada, com mais de quarenta instituições de treze países representadas. Como parte dos nossos esforços de gestão de risco, a ISDA patrocinou conjuntamente com a British Bankers Association e Robert Morris Associates uma pesquisa inovadora sobre o risco operacional em cinquenta e cinco instituições em todo o mundo. Os resultados do inquérito, que confirmou que o risco operacional sempre foi gerido em instituições financeiras, mas que foi visto mais recentemente como uma disciplina separada com a sua própria estrutura de gestão, ferramentas e processos, foram apresentados ao Comité de Basileia e serão Apresentadas a outras autoridades reguladoras e aos nossos membros em todo o mundo. Ao longo de 1999, a documentação continuou a ser uma prioridade absoluta em nossa agenda, por sua importância na redução de riscos legais e outros. Nossa liderança nesta área está bem estabelecida e foi aprimorada em 1999 com a publicação de Definições de Derivativos de Crédito, o Guia de Usuários das Definições de Opções de Câmbio e FX de 1998 (publicado conjuntamente pela ISDA com a Emerging Markets Traders Association e o Foreign Exchange Committee ) Eo Guia do Usuário dos Documentos de Apoio ao Crédito da ISDA, de acordo com a Lei Inglesa. O projecto de Definições do ISDA de 2000, uma consolidação das Definições ISDA de 1991, o Suplemento de 1998 às Definições do ISDA de 1991 e as Definições do Euro do ISDA de 1998, reflectem as actuais práticas de mercado, particularmente à luz da introdução do Euro e a descontinuação das fontes de taxa em 11 moedas. Em preparação para a transição para o ano 2000, concluímos uma revisão de nossa documentação para antecipar, analisar e potencialmente resolver problemas que poderiam surgir como resultado de problemas do ano 2000, concluímos que não havia preocupações importantes de documentação do ISDA que precisassem ser abordadas. Durante o ano passado, iniciamos uma revisão estratégica de nossa documentação para garantir que ela continue a lidar mais eficazmente com as questões de mercado enfrentadas por nossos membros. Este processo envolveu a criação de uma Task Force de Revisão Estratégica global e de quatro grupos de trabalho menores - sobre o Acordo Geral Condições Estruturais Problemas de Força Maior de Rescisão, Avaliação e Fechar e Colateral. Cada um dos Grupos de Trabalho desenvolveu recomendações para sua área específica, que foram endossadas pela Força-Tarefa e estão agora redigindo ou modificando disposições para documentos do ISDA que serão revistos pelo Comitê de Documentação do ISDA e outros membros interessados. Para promover a segurança jurídica em torno da documentação do ISDA, temos agora um total de 34 pareceres jurídicos sobre a aplicabilidade da cláusula de compensação dos acordos-mestre ISDA, incluindo cinco novos pareceres para o Japão, Nova Zelândia, Austrália, Alemanha e Holanda, Nessas jurisdições. Também atualizamos 28 outras opiniões. As opiniões legais sobre os documentos de apoio ao crédito do ISDA já foram obtidas em 12 jurisdições, outras nove estão em andamento e outras 10 foram encomendadas. A ISDA também está trabalhando com o Banco Europeu de Reconstrução e Desenvolvimento na elaboração da legislação de compensação na República Tcheca, na Hungria e na Polônia, e os desenvolvimentos positivos da compensação ocorreram no México e na Argentina através dos esforços da ISDA e de seus membros. Após a publicação em 1998 das Diretrizes da ISDA para Técnicos de Garantia, desenvolvemos e publicamos no ano passado um documento sobre questões mais complexas de gerenciamento de garantias. A Análise de Garantias 1999 da ISDA avalia como os programas de colateralização e gestão de garantias para transacções de derivados negociados de forma privada durante os períodos de volatilidade do mercado em 1997 e 1998 e propõe novas iniciativas para aumentar a eficácia da gestão de garantias. Um grupo de trabalho de profissionais concluiu e distribuiu para revisão pelas sugestões dos membros para racionalizar a documentação existente de apoio ao crédito do ISDA para refletir as recomendações da Revisão de Garantias de 1999. Espera-se que isso resulte na publicação de documentação de suporte de crédito revisada em 2000. Nosso Comitê de Garantias também realizou um grande levantamento de exposição e práticas colaterais que aborda todos os aspectos da gestão de garantias. A pesquisa reflete respostas de membros da ISDA e de não-membros selecionados e instituições com programas de garantia novos ou maduros. O nosso Grupo Europeu de Reforma da Lei de Garantias deu passos substanciais em 1999. Foi concluída uma síntese e relatórios específicos sobre questões de direito colateral em 15 países (abrangendo cada jurisdição da União Europeia). Na sequência deste trabalho, bem como a criação de um grupo de trabalho relacionado com as garantias e a designação de questões colaterais como prioridade pela Comissão Europeia, os nossos grupos concentram-se no desenvolvimento e implementação de opções estratégicas que abordam e resolvem os problemas identificados. Em 1999, foram iniciadas duas novas comissões - Derivados de Acções e Derivados de Energia. O primeiro grupo inclui aspectos como o impacto da integração europeia em vários índices e o tratamento de questões de documentação. A formação deste último comitê reflete, em parte, a adição de um número de empresas de energia para os nossos membros eo interesse da ISDA em melhorar o ambiente comercial, regulamentar e de negócios para as transações de energia. Nossos esforços incluem a elaboração de um Suplemento Energético às Definições de Derivados de Produtos de 1993 para melhor cobrir os mercados de energia e energia, particularmente na Europa. As questões de política pública continuaram a figurar na agenda dos nossos membros e da Associação em 1999, sobretudo quando surgiram novos quadros regulamentares na Europa após a introdução do euro e nos EUA, na sequência da revogação da Glass-Steagall. Nessas jurisdições, assim como em outras partes do mundo, mantivemos nosso alto perfil e defesa dos interesses do setor. Na Ásia, por exemplo, a ISDA realizou em março um seminário sobre questões relacionadas ao crédito para reguladores asiáticos em Kuala Lumpur, iniciado pela Autoridade Monetária de Hong Kong e organizado pelo Bank Negara Malaysia. Participaram cerca de sessenta reguladores, representando os mercados financeiros da Austrália, China, Hong Kong, Indonésia, Japão, Coréia, Malásia, Nova Zelândia, Filipinas, Cingapura e Tailândia. O sucesso deste seminário levou ao agendamento em outubro de um dia e meio fórum sobre gerenciamento de risco para reguladores asiáticos em Cingapura que foi co-organizado pela ISDA ea Autoridade Monetária de Cingapura. Participaram reguladores do Japão, China, Hong Kong, Índia, Indonésia, Malásia, Tailândia e Cingapura. Os esforços de extensão de nossos membros também assumiram novas dimensões, já que realizamos mais conferências e reuniões com membros em mais locais do que nunca: Europa Ocidental e Oriental, Ásia Oriental e do Sudeste e Austrália, África do Sul e Américas. Realizamos, por exemplo, nossos primeiros seminários na China e na Coréia no ano passado. Essas sessões desempenham um papel valioso na educação da indústria e outros sobre os principais desenvolvimentos da indústria e iniciativas da Associação ea resposta dos nossos membros continua a ser entusiasmado. Como resultado das demandas dos membros e de nossas iniciativas em curso em todo o mundo, tornou-se claro que nossa representação efetiva da indústria exige que estabeleçamos uma presença em regiões-chave e mercados financeiros. É por isso que há vários anos nós adicionamos um escritório europeu, com sede em Londres, que complementa o trabalho da sede de Nova York. É também por isso que vamos abrir um escritório do ISDA em Tóquio em 2000. O número de comissões eo nível de trabalho que estão a ser desenvolvidos pelos nossos membros japoneses aumentaram consideravelmente eo nosso escritório em Tóquio terá um papel importante na facilitação e liderança das nossas actividades. Estamos também bem ao longo do nosso planeamento para abrir um escritório em Hong Kong ou Cingapura mais tarde em 2000. Enquanto as atividades e regiões geográficas em que ISDA está envolvido são substanciais e generalizada, a nossa estratégia subjacente continua muito focado. Em primeiro lugar, continuamos empenhados em cumprir nossa missão: incentivar o desenvolvimento prudente e eficiente do negócio de derivativos negociados de forma privada e o desenvolvimento e manutenção de práticas sólidas de gerenciamento de risco. Em segundo lugar, continuamos a ser uma organização orientada por membros, cuja estratégia e direção são impulsionadas por nossas empresas associadas. E, em terceiro lugar, continuamos convencidos de que nossa eficácia e sucesso são, em última instância, devido à participação contínua e participação ativa de indivíduos nessas empresas. A natureza internacional do ISDA também se reflete na composição de nosso Conselho de Administração, que é composto por vinte e duas empresas-membro de 10 países. O Conselho proporcionou forte orientação estratégica para a Associação ao longo do ano e membros individuais desempenharam papéis de liderança importantes nas atividades e projetos do comitê. Os membros do Conselho em funções para o terceiro trimestre de 1999 estão listados abaixo. Outros membros da Diretoria cujo mandato terminou em 1999 foram Joseph Bauman do Bank of America, Mark Brickell de J. P. Morgan, Tsuyoshi Hase do Banco Industrial do Japão e Mark Wallace de SBC Warburg Dillon Read. Charles Smithson, da CIBC World Markets, e Dirk Brouwer, da Trinkhaus, e Burkhardt KgaA, também renunciaram ao cargo durante o ano. ISDA está muito grato a eles por seus esforços em nome da indústria e da Associação. O ano também viu um reforço significativo do pessoal da ISDA. O tamanho e as capacidades do escritório europeu de ISDAs continuaram a crescer. Tive o prazer de nomear Nick Collier para o cargo de Director de Política Europeia e Chefe do Gabinete Europeu. Também tive o prazer de dar as boas-vindas ao escritório europeu Emmanuelle Sebton como Diretor de Gestão de Riscos e Richard Metcalfe como Diretor Adjunto da Política Européia. Na América do Norte, fiquei igualmente satisfeito por dar as boas-vindas a Ruth Ainslie no cargo de Diretora Sênior de Política para as Américas e Relações com a Mídia, Stacy Carey como Diretora da Política Reguladora dos EUA e Roseanne Stanzione como Diretora Assistente da Política para as Américas. Os esforços do pessoal profissional do ISDA e dos consultores externos voltaram a reflectir-se nas realizações de 1999 e gostaria de os agradecer pela sua dedicação e trabalho árduo. Matthew Elderfield, que serviu como chefe do escritório europeu do ISDA, renunciou à Associação em maio de 1999 para aceitar um cargo como Chefe de Trocas e Câmaras de Compensação da U. K. Financial Services Authority. A ISDA agradece a Matthew por seus anos de liderança nos esforços europeus da ISDA. Desejamos-lhe todo o sucesso em seu novo papel. Em nome do nosso Conselho de Administração e do nosso pessoal, agradeço a sua adesão à ISDA. Continuaremos a fazer tudo o que pudermos no próximo ano para garantir o seu apoio, reforçar o seu empenho e incentivar a sua participação no trabalho da Associação. Sinceramente, Richard E. Grove Diretor Executivo e Diretor Executivo Ao longo de 1999, a ISDA continuou em seus esforços para atualizar os membros sobre questões-chave da indústria em áreas como gerenciamento de risco, documentação, regulação, impostos, contabilidade, mercados emergentes e implementação da UEM. O aumento da utilização das comunicações electrónicas, o sítio internet da ISDA e o boletim bimensal da ISDA permitiram à Associação manter os seus membros informados e envolvidos de forma eficiente ao longo do ano. Durante o ano, os directores e funcionários do ISDA fizeram apresentações em seminários e reuniões de actualização de membros abrangendo uma série de tópicos em jurisdições como Austrália, Áustria, Bélgica, Canadá, China, Dinamarca, Finlândia, França, Alemanha, Hungria, Índia, Irlanda, Itália, Coréia, Malásia, Noruega, Polônia, Portugal, Singapura, África do Sul, Suécia, Suíça, Tailândia, Reino Unido e Estados Unidos. Com a perspectiva de novos escritórios em Tóquio e no Sudeste Asiático em 2000, o nível de serviço oferecido pela Associação só melhorará nos próximos anos. Os benefícios das associações, o nível de atividade e a importância das questões abordadas pelo ISDA em 1999 continuaram a alimentar um aumento significativo na filiação. Noventa e dois novos membros se juntaram à Associação no ano passado, incluindo o primeiro da Índia. Atualmente, a adesão da ISDA atende mais de 460 instituições financeiras, entidades governamentais, corporações e prestadores de serviços profissionais de 36 países. Os novos membros refletem, em parte, o crescimento da atividade de swaps e outros derivativos em energia, seguros e mercados emergentes. Em 1999, a ISDA operou comitês e grupos de trabalho em cada uma das seguintes áreas: Contabilidade e Divulgação Gestão de Garantias Derivados de Mercadorias Documentação Mercados Emergentes Derivados de Energia Derivativos de Capital União Monetária Europeia Prática de Mercado Regulação de Operações Administração de Riscos e Fiscais, bem como comitês locais na África do Sul , Sudeste Asiático e Hong Kong, Japão e Canadá. Entre os destaques das atividades da ISDA na região da Ásia-Pacífico em 1999 foram dois seminários sobre gestão de risco que a ISDA Para os reguladores regionais. O primeiro seminário, que foi iniciado pela Autoridade Monetária de Hong Kong e organizado pelo Banco Negara Malásia, foi realizado em Kuala Lumpur em março e abordou questões relacionadas ao crédito. O seminário contou com a participação de cerca de 60 reguladores da Austrália, China, Hong Kong, Indonésia, Japão, Coréia, Malásia, Nova Zelândia, Filipinas, Cingapura e Tailândia. Os tópicos discutidos incluíram análise e gerenciamento de risco de crédito, documentação como uma técnica de mitigação de risco de crédito, prática de garantias, aplicações de derivativos de crédito e diretrizes de adequação de capital para risco de crédito. Os participantes da ISDA incluíram representantes de membros da ISDA e funcionários de Singapura, Hong Kong, Tóquio, Londres e Nova York. O segundo seminário, co-organizado pela Autoridade Monetária de Singapura (MAS), foi realizado em outubro, em Cingapura. Os tópicos abordados no seminário incluíam risco de mercado, risco de crédito, risco operacional e risco legal. Participaram reguladores de diversos mercados, incluindo China, Hong Kong, Índia, Indonésia, Japão, Malásia, Cingapura e Tailândia. O grupo ISDA consistia de membros do Conselho de Administração, funcionários e representantes de empresas-membro de Nova Iorque, Londres, Tóquio, Frankfurt, Amesterdão, Singapura e Hong Kong. A ISDA esteve activa durante 1999 ao comentar iniciativas reguladoras em toda a região. Entre as propostas que a ISDA comentou foram as diretrizes propostas pelo MAS para o uso de derivativos pelas seguradoras, o Banco de Reservas das Índias propôs diretrizes autorizando a transação de contratos de taxa de juros e swaps de taxa de juros denominados em rupias eo Banco Negara Malásia propôs diretrizes relativas ao uso de Derivados por companhias de seguros da Malásia. A ISDA também comentou várias propostas de adequação de capital relativas a derivados de crédito emitidos por reguladores regionais, incluindo a Austrália e Hong Kong. A ISDA também acompanhou activamente uma série de outros desenvolvimentos legais na região durante 1999. Estes incluíram litígios relacionados com a interpretação do Acordo Geral ISDA após a liquidação da Peregrine em Hong Kong e vários processos judiciais relacionados com a força executiva de contratos de derivados na Indonésia. De particular preocupação para a ISDA e seus membros foram os processos de liquidação relativos à Guangdong International Trust e Investment Corporation (GITIC) na China. O comitê de liquidação da GITIC emitiu uma decisão preliminar rejeitando certas reivindicações de derivativos arquivados pelos credores da GITIC, alegando que a GITIC não conseguiu obter a devida autorização da Administração Estatal Chinesa de Câmbio (SAFE) antes de realizar as transações. Os requerentes podiam apresentar objecções à decisão e, até ao final do ano, ainda não tinha sido emitida uma decisão final sobre as acusações. Em novembro, o ISDA enviou uma carta ao Peoples Bank of China e ao SAFE solicitando que atendessem à incerteza jurídica levantada pelos procedimentos da GITIC. A ISDA também realizou uma série de reuniões com reguladores e participantes do mercado na região durante 1999. Em janeiro, uma delegação da ISDA visitou a Índia e fez uma apresentação sobre os derivados e questões de gestão de risco em Mumbai. Em março, representantes da ISDA visitaram membros e reguladores na Austrália, Cingapura e Malásia. Em maio, uma equipe da ISDA realizou seminários na China e na Coréia sobre documentação do ISDA e questões de gerenciamento de risco. Em outubro, as equipes da ISDA visitaram Cingapura, Malásia, Tailândia e Índia. A ISDA também realizou sua Atualização Regional Ásia-Pacífico anual em outubro, em Cingapura. O principal orador regulador na atualização de Cingapura foi Tharman Shanmugaratnam do Instituto Monetário de Cingapura. Os esforços da ISDA na região continuam a ser liderados pelos membros do seu Comité de Direcção para o Sudeste Asiático e por uma variedade de subcomités que trabalham no âmbito do Comité Director. O comitê continua a se reunir com freqüência em Hong Kong e Cingapura e recebe apoio administrativo de um escritório de representação localizado em Hong Kong. No final do ano, o Conselho de Administração do ISDA aprovou uma proposta para estabelecer um escritório completo do ISDA no Sudeste Asiático durante o ano 2000. O escritório do ISDA, que será localizado em Singapura ou Hong Kong, fornecerá apoio ao ISDAs Sudeste Ásia Steering Committee e subcomitês e ISDAs regionalmente membros baseados. O escritório será responsável pela coordenação das atividades do ISDA para o Sudeste Asiático, China e Coréia, Austrália e Nova Zelândia e Índia. O escritório será dotado inicialmente de dois funcionários de tempo integral da ISDA. A abertura está marcada para outubro de 2000. COMITÊ DE MEMBROS DO CANADÁ O Comitê de Sócios canadenses do ISDA continuou focalizando questões de particular preocupação para os membros canadenses do ISDA. Em meados do ano, a Comissão de Valores de Ontário (OSC) emitiu um relatório da Task Force sobre Dívida-Como Derivativos, que incluiu uma regra proposta e política. A ISDA enviou uma carta de comentários ao OSC indicando a opinião de seus membros canadenses de que a regra proposta iria dificultar o mercado de produtos de dívida estruturada que são populares entre os investidores canadenses. Na sua carta de comentários, a ISDA indicou que não havia evidências de problemas no mercado para estes instrumentos actualmente e, como tal, não havia necessidade de intervenção legislativa. A ISDA apelou a uma resposta regulamentar e não legislativa e ofereceu sugestões específicas para melhorias na proposta. Em julho, a ISDA e seus membros foram surpreendidos por emendas à legislação de valores mobiliários em Alberta, que ampliou a definição de títulos de uma forma que parecia abranger operações de derivativos negociados de forma privada. Embora os participantes da indústria tenham se sentido confortáveis com a obtenção de isenções da legislação, permaneceu preocupado com as abordagens que seriam adotadas por outros reguladores provinciais, como a British Columbia Securities Commission (BCSC). No final do ano, o BCSC finalizou a isenção da cobertura da lei provincial de valores mobiliários para uma ampla gama de derivativos OTC. O alívio foi consideravelmente mais longe do que o oferecido em Alberta. A Associação continua a trabalhar com o BCSC e outras comissões provinciais de valores mobiliários para conseguir um tratamento das transacções de derivados OTC que reflectem correctamente a sua natureza única e promova a segurança jurídica. Em junho, os tribunais canadenses consideraram que certos contratos não-ISDA que regem as transações que contemplavam a entrega física não eram contratos financeiros elegíveis de acordo com a lei canadense de insolvência. Embora os contratos envolvidos no caso não fossem contratos do ISDA, as provisões de encerramento relevantes foram baseadas nas contidas no Acordo Mestre do ISDA. Houve uma decisão anterior do juiz de primeira instância de que as transações liquidadas em dinheiro executadas sob um Contrato Mestre da ISDA têm direito aos benefícios da lei canadense de insolvência. O caso, envolvendo a Blue Range Resources Corporation, está atualmente sob apelo e uma audiência está marcada para o primeiro trimestre de 2000. A ISDA foi autorizada a intervir no recurso e está trabalhando com seus membros canadenses para determinar a melhor maneira de Para dar seu apoio. EMERGING MARKETS TASK FORCE Mercados Emergentes Europeus ISDAs A European Task Force de Mercados Emergentes foi criada em 1997 para focar em questões importantes para o desenvolvimento dos mercados de derivados na República Checa, Hungria, Polónia e Rússia e para trabalhar com os participantes locais e as autoridades locais para Promover a segurança jurídica, nomeadamente nos três domínios da legislação em matéria de compensação, da documentação local e da regulamentação adequada. Em 1999, registaram-se progressos nestas áreas nos três países em que a ISDA se concentrou. Na sequência de discussões com a equipa de transição jurídica do Banco Europeu de Reconstrução e Desenvolvimento (BERD) em 1999, foi acordado que o BERD envolverá o ISDA (juntamente com Allen amp Overy) como consultores na elaboração de legislação de compensação em até cinco países da Europa Central e Oriental Países em desenvolvimento. Trata-se de uma iniciativa positiva do BERD, que já apoiava o trabalho do ISDA neste domínio. Esperemos que o apoio do BERD encoraje os governos em causa a reconhecer a urgência da questão. Num evento importante para encerrar o ano, o ISDA eo BERD organizaram um seminário em Praga em Dezembro, com destaque para a importância da compensação no mercado de derivados, para o qual a Associação convidou uma vasta gama de participantes e funcionários do mercado local. O seminário foi seguido no dia seguinte por uma atualização geral sobre as atividades do ISDA. Ambos os eventos foram extremamente bem atendidos por banqueiros, bancos centrais, reguladores e funcionários do ministério não apenas da Polônia, Hungria e República Tcheca, mas também da Eslováquia e outros países europeus. No início de 1999, o ISDA visitou representantes do Banco Nacional, do Ministério das Finanças, da Comissão de Valores Mobiliários e da Associação de Bancos da República Checa, bem como profissionais do mercado para discutir questões legais e regulamentares relevantes para os mercados de derivados na República Checa. As discussões centraram-se no documento de advocacia do ISDA que delineia os argumentos a favor da legislação de compensação, com membros activos do ISDA, incluindo o BERD, bem como participantes do mercado local, instando os funcionários do governo checo a apoiar a criação e adopção de legislação de compensação. Como resultado, durante o ano de 1999, a Associação de Mercados Financeiros (FMA), que inclui o Banco Nacional, desenvolveu um projeto de lei de compensação. A ISDA reviu os projectos propostos através de Allen amp Overy, o seu consultor jurídico europeu, e espera-se que o parlamento checo altere a lei sobre a falência, bem como a Securities Act para permitir a compensação de transacções de derivados no âmbito do ISDA Master Agreement em 2000. As FMA também expressaram entusiasmo pelo desenvolvimento de documentação de derivativos locais padronizada, possivelmente de acordo com o modelo húngaro discutido abaixo. Separadamente, o Banco Nacional solicitou que a ISDA ajudasse no desenvolvimento de um programa de treinamento de risco de mercado para seu pessoal de supervisão. Em Agosto, em conjunto com a KPMG e com o apoio do Gabinete de Intercâmbio de Informações sobre Assistência Técnica da Comissão Europeia (TAIEX), a ISDA realizou um curso de formação para introduzir o método normalizado na Diretiva de Adequação de Capital da UE (CAD) Tais como os modelos internos de valor em risco, abrangidos pela última directiva de alteração do CAD. Em 1999, a Associação Húngara de Forex finalizou o desenvolvimento de uma documentação normalizada, em inglês, local, para uso no mercado de derivados húngaro. Embora este não seja um documento do ISDA, o ISDAs Task Force teve a oportunidade de rever o projecto de documentação antes da sua publicação. A documentação, elaborada em grande parte por Allen amp Overy, é compatível com a documentação existente do padrão de mercado do ISDA, assumindo a forma de suplementos locais para o ISDA e as definições ISDA e foi publicada em maio de 1999. A Task Force apoiou os esforços da Húngaro no desenvolvimento de documentação local que possa ser utilizada também para o comércio transfronteiriço. Espera-se que a indústria checa e polonesa siga o exemplo e empurre para a sua própria documentação local, ISDA-compatível. A ISDA aprendeu que o Ministério das Finanças e o banco central apoiam a inclusão de uma definição de compensação de encerramento numa proposta de reforma dos mercados de capitais. É necessário continuar a advocacia, mas a ISDA espera poder trabalhar com as autoridades locais e com a indústria para começar a elaborar legislação com o apoio financeiro do BERD. Na sequência de um seminário realizado em Setembro de 1998 sobre os princípios da gestão de riscos, as Associações Polaca de Bancos e Forex prosseguiram um projecto de documentação local e estão também interessadas em pressionar a adopção de legislação de compensação. Em Dezembro de 1999, com base num pedido do TAIEX, o ISDA organizou um seminário para o banco nacional polaco, que desenvolveu a implementação de transacções de derivativos, swaps e recompra. Outras visitas a Varsóvia para discutir com os participantes do mercado e órgãos reguladores a necessidade de introduzir legislação de compensação estão planejadas para 2000. Ao longo de 1999, a ISDA continuou seu diálogo com os legisladores e reguladores argentinos e mexicanos. Os recentes desenvolvimentos em ambas as jurisdições têm sido encorajadores. Na Argentina, uma mudança de governo atrasou a implementação da legislação revisada de falência, originalmente proposta em finais de 1998, tratando a rescisão automática de contratos e compensação de fechamento em caso de falência. O Ministério da Justiça propôs uma série de emendas à lei proposta (Lei nº 24.522, Lei de Concursos e Quiebras) que se espera que o novo Congresso considere após o recesso legislativo. The Mexican congress has enacted a bill (Ley de Concursos Mercantiles) that addresses bankruptcy issues in general and includes provisions addressing automatic termination of contracts and close-out netting in the event of bankruptcy. There appears to be broad legislative support for the bill and it is hope that it will be passed into law soon. Collateral issues were at the top of ISDAs agenda in Japan in 1999. Early in the year, ISDA created a collateral sub-committee under its Tokyo Operations Committee. The first meeting of the sub-committee in February was attended by approximately fifty market participants. Discussions focused on operational issues relating to the transfer of Japanese collateral. A second meeting of the sub-committee (later in the spring) was devoted to a discussion of the legal issues surrounding the use of collateral in Japan. During the summer, the sub-committee was elevated to full committee status under the chairmanship of ISDA Board member Shigeru Asai of Sanwa Bank. The committee set as its objectives the enhancement of collateral usage to mitigate credit risk and the establishment of guidelines for managing collateral programs in Japan. In October, the Collateral Committee sponsored a series of meetings with ISDA members, the Bank of Japan (BOJ) and the Japanese Financial Supervisory Agency (FSA) to discuss collateral and derivatives. Michael Clarke of JP Morgan, co-chair of ISDAs global Collateral Committee, and Susan Hinko, ISDAs Director of Policy for the Americas, made presentations discussing the global growth in collateralization, the benefits and risks of collateral, the legal and regulatory framework for collateral and the Basel Committees capital guidelines relating to collateral. They also discussed the type of organizational infrastructure required to ensure a professional and efficient collateral management operation. ISDAs Tokyo Documentation Committee was also active during 1999. The FX Definitions Working Group established by the Committee began collaborating with the Tokyo FX Markets Committee on a Japanese-language Users Guide to the 1998 FX and Currency Option Definitions. The guide will not be a direct translation of the English version but will explain in plain Japanese such new concepts as Disruption Events and Non-Deliverable FX. Activities of the ISDA Tokyo Operations Committee in 1999 included discussions on how to deal with negative interest rates. These discussions focused on such systems issues as automated calculation, mark-to-market accounting and cash flow information. The Operations Committee also discussed the introduction and status under Japanese law of fax confirmations. During 1999, ISDA established a Tokyo Regulatory Committee under the chairmanship of Tsuyoshi Hase of IBJ-Nomura, a former ISDA Board member. The Committee set up three subcommittees. The first is the Tax and Accounting Subcommittee, which has focused on Japanese accounting developments, particularly the introduction of mark-to-market accounting for the banking book. The second is the Legislative Committee, which initially concentrated on the Japanese Financial Services Act. The third is the Capital Adequacy Subcommittee, which focused on the Basel Committee Capital Accord Reform process. ISDA held several meetings with Japanese regulators during the year to discuss issues of mutual interest. In April, Rick Grove, ISDA CEO, and ISDA Board members Teruo Tanaka of IBJ and Shigeru Asai of Sanwa Bank met with the BOJ. The same ISDA representatives, joined by ISDA Chairman Mark Harding and several other North American and European-based ISDA Directors and staff members, made a follow-up visit to the BOJ in October. At the same time, the group visited the FSA and the Ministry of Finance. Discussions concentrated on Japans Big Bang, the reform of the Basel capital accord and ISDAs activities in Japan and elsewhere around the world. ISDA held two other important meetings with Tokyo-based members in 1999. In April, ISDA representatives met with Japanese members to discuss anticipated future developments in derivatives activity and risk management. In October, ISDA held its annual Tokyo members update over a two-day period. The first day consisted of specialist briefings relating to Japanese regulatory and legislative changes, credit derivatives documentation, collateral, tax and accounting. The second day included an overview of ISDAs global documentation, risk management, collateral, accounting and market practice issues. The keynote regulatory address was delivered by Masaaki Shirakawa, advisor to the Governor of the BOJ. Toward the end of the year, the ISDA Board approved a proposal to establish a full ISDA office in Tokyo during the year 2000. The ISDA Tokyo office will provide support to ISDAs Tokyo committees and ISDAs Tokyo-based members. The office will be staffed initially by two full-time ISDA staff members. The opening is set for April 13. Strategic Documentation Review In June 1999, ISDA began a comprehensive review of certain key aspects of its standard-form documentation. The project, called the ISDA Strategic Documentation Review, is being undertaken to ensure that ISDAs documentation continues to reflect both developing market practice and the experiences of industry practitioners during periods of market stress experienced in late 1997 and throughout 1998. Throughout 1999, four working groups focused on issues of termination, valuation and close-out force majeure master agreement structural issues and collateral documentation. Each of the working groups is comprised of senior legal staff from member firms having particular expertise in ISDA documentation. In relation to the work done on collateral documentation, which followed on from the recommendations contained in the ISDA 1999 Collateral Review, see the section on Collateral Management, below. Each of the other three areas of discussions are considered in turn below. Pending publication of an amended ISDA Master Agreement, it is intended that a protocol mechanism will be established to implement on a multilateral basis the amendments resulting from the project. Termination, Valuation and Close-out Working Group The focus of this working group is Sections 5 and 6 of the ISDA Master Agreement. During recent periods of market stress, it became clear that, although legally robust, the Market Quotation payment measure contained in the ISDA Master Agreement may not be sufficiently flexible in a crisis situation. The mechanism requires that quotations be obtained from at least three Reference Market-makers. During periods of market stress, this can prove difficult in the cases of large or illiquid portfolios. The working group is seeking to develop a more flexible approach, allowing parties to draw on a wide range of market information, including, where reasonable, the use of data produced internally to determine replacement values for transactions accurately and on a timely basis. The working group is also reviewing the Events of Default and Termination Events set out in the Agreement to assess whether it would be appropriate to shorten cure periods and other relevant timeframes. Force Majeure Working Group Recent periods of market turmoil also accentuated the importance of clarifying the effect of impossibility or force majeure events on the contractual obligations of parties to an ISDA Master Agreement. Although it contains provisions addressing Illegality, the ISDA Master Agreement does not currently address impossibility or force majeure. This working group is developing a suitable provision and assessing appropriate cure and waiting periods. Similar work has been being undertaken by the Foreign Exchange Committee of the Federal Reserve, and efforts are being made to coordinate approaches. Master Agreement Structural Issues Working Group The goal of this working group is to develop a legally robust and practical means by which industry participants can take greater advantage of cross-product netting. The working group is considering three means of achieving this: first, the working group is considering the development of bridges to other master agreements such as the Global Master Repurchase Agreement produced by the Bond Market Association (TBMA) and the International Securities Market Association. Similar bridges were prepared by ISDA in 1996 to enable parties to draw transactions executed under the FRABBA and BBAIRS provisions prepared by the British Bankers Association into their ISDA Master Agreements. Secondly, the group is considering the practicalities of a master-master agreement approach to cross-product netting. This is an area in which TBMA is undertaking a considerable amount of work. ISDA, through its external counsel, has commented on exposure drafts of a master netting agreement produced by TBMA and will continue to examine their efforts going forward, with a view to endorsing any suitably robust document. Thirdly, the group is looking to develop a single broad-ranging master agreement that would enable parties to document a broader range transactions, including repurchase transactions, under a single agreement. Most recently, the working group has focused on the development of bridges. However, ISDA considers that these bridges will be a temporary measure. The longer-term, permanent solution will be a broad-ranging single master agreement. 2000 ISDA Definitions Through the substantial efforts of a small working group and a larger task force in the latter part of 1999, the Association pursued its goal of publishing a revised set of definitions for interest rate and currency swap transactions. The product of these efforts will be called the 2000 ISDA Definitions and will combine the 1991 ISDA Definitions, the 1998 Supplement to those definitions and the 1998 Euro Definitions to create a document that will hopefully stand the test of time as well as the original 1991 ISDA Definitions has. The group is focusing on issues such as cash settlement, where it is seeking to reflect the experience of market participants in using the existing cash settlement provision while anticipating the likelihood that market practice in that area will continue to evolve in the coming years. ISDA expects to complete this project in the first quarter of 2000. 1999 ISDA Credit Derivatives Definitions In July, the Association published the 1999 ISDA Credit Derivatives Definitions. The Definitions, which are intended to facilitate the documentation of credit default transactions, have quickly gained broad market acceptance. The Definitions provide parties to credit default transactions with a shorter, more convenient means of documenting their transactions, replacing long-form confirmations based on the form ISDA published over two years ago. In addition to streamlining the documentation of individual transactions, the Definitions provide greater certainty of terms, more flexibility in tailoring specific provisions and wider coverage of underlying obligations. One of the principal aims of the Association in developing the definitions was to promote legal certainty in the market for credit default products. It is hoped that this has been achieved through the production of objective definitions, most clearly evident in the revised definition of the Restructuring Credit Event. Work on a users guide to the Definitions is well under way and should be completed by the end of the first quarter of 2000. The users guide will not only include detailed explanation of the provisions in the Definitions, but will also address other issues that were considered in the course of drafting the definitions. Work on additional credit derivative product areas in also in the Associations future documentation plans. Year 2000 Review of ISDA Documentation The Association worked with the Financial Markets Lawyers Group and with the Global Year 2000 External Risk Mitigation and Contingency Planning Committee to consider Y2K date change issues that may affect the financial markets. The ISDA Year 2000 Review of Standard Documentation represented one aspect of ISDAs efforts in this regard. Like a number of other financial markets industry associations, ISDA conducted an extensive review of its standard-form documentation with a view to highlighting any provisions of which industry participants should be particularly aware in light of the Y2K date change problem. It also contained a summary of ISDAs Business Day Conventions and reproduced the Global 2000 calendar of local market closures around the millennium period. Having undertaken the review process, the Association was able to conclude with certainty that there were no Y2K time bombs buried in its documentation. NETTING AND COLLATERAL OPINIONS Mitigation of risk through the use of netting and collateralization continued to be a central consideration for the Association throughout 1999. Both the Strategic Documentation Review and the efforts of the ISDA Collateral Committee focused considerable efforts on these area during the year. A further manifestation of this focus was the expansion of the Associations efforts to collect opinions on the enforceability of the ISDA credit support documents and the close-out netting provisions contained in the ISDA Master Agreement. At the end of 1999, a netting opinion for the Bahamas was commissioned. This will bring the total number of jurisdictions from which netting opinions have been obtained to thirty-five. Revised opinions were obtained to reflect newly enacted netting legislation in Australia, Germany, Japan, the Netherlands and New Zealand. Opinion updates from thirty-one jurisdictions were solicited during the year and have been delivered to members. The Associations collateral opinion project, which began in 1997, is continuing to grow to meet the needs of ISDA members. Collateral opinions have now been acquired from a total of fourteen jurisdictions. In 1999, opinions from France, Germany, Hong Kong and Thailand were distributed to members and opinions from Italy, the Netherlands, Portugal and Spain are under consideration. Additionally, the Association plans to commission collateral opinions from Australia, Austria, Bermuda, Denmark, Finland, Ireland, The Netherlands Antilles, Norway, South Africa and Sweden in 2000. ISDA is continuing to research ways in which available technology can be used to deliver netting and collateral opinions to members more promptly and in a medium that would allow members to distribute the opinions more easily to interested parties within their organizations. In 2000, ISDA began to deliver its opinions by e-mail, in addition to hard copy form. ISDA placed a strong emphasis on risk management in 1999, following the announcement by the G10 Basel Committee of Banking Supervisors of a major review of international capital adequacy standards and the issue of a parallel consultation paper by the European Commission. The Basel Committee consultation paper was a welcome development and followed an active campaign by ISDA to raise awareness of the flaws of the 1988 Capital Accord, which culminated in the publication of ISDAs paper on credit risk capital reform (Credit Risk and Regulatory Capital, March 1998). ISDA considers the on-going Capital Accord review to be an excellent opportunity to ensure that regulatory capital is more closely aligned with banks economic capital and, in particular, to secure an incentive-compatible treatment of credit risk mitigation instruments. It is of the utmost importance that regulators apply charges that are directionally consistent with the risks that they are trying to capture. Of equal importance however is the need for a fundamental re-think of the rationale for applying minimum capital charges. ISDA believes that for some categories of risk, most prominently operational risk and interest rate risk in the banking book, applying minimum capital requirements is not the correct approach. As a complement to its Basel review initiative, ISDA also carried out in-depth studies of operational risk practice and credit risk modelling. These initiatives, launched jointly with other trade associations, have greatly contributed to improving the expertise of member firms in the fields concerned, and will, it is hoped, be useful to regulators. Reform of the Basel Accord To address the many issues raised by the Capital Accord review, ISDA set up three working groups under the oversight of a Capital Accord Steering Committee. More than 40 firms, representing 13 countries were involved in the response process: The CFWG considered the adequacy of the overall framework proposed by the Basel Committee, notably the soundness standard underpinning the regulatory capital requirements and the suitability of applying minimum capital charges against the various forms of risk envisaged by the Committee. The IRWG structured a matrix of credit risk capital charges, and proposed methodologies for attaining a more appropriate treatment of credit risk mitigation. The ORWG drew on banks of different types from a number of jurisdictions and focused on the appropriateness of a minimum charge for operational risk, as distinct from the process of supervisory review. As with other aspects of ISDAs response, the prime concerns were the risk-sensitivity of any regulatory treatment and the incentives it embodied. This work also entailed extensive regulatory liaison, which is set to continue in 2000. ISDA concluded that the regulators ought to promote the following principles in the new capital adequacy framework: Clarity . The assumptions underlying the new framework should be made explicit where this is possible. For instance, the horizon set for holding capital (equivalent to the holding period retained in the trading book rules), as well as the loss percentile assumed, should be clearly defined. This is a pre-requisite for establishing a consistent, incentive-compatible framework, particularly since relying on portfolio risk models in the longer-term future is envisaged. ISDA suggests retaining 99th percentile loss over a one year horizon as a basis for setting capital requirements. This would ensure that capital charges constitute a maximum insolvency standard that is non-constraining for well managed banks. Economic consistency: Regulatory capital charges should be aligned more closely with banks economic capital, and certainly be directionally consistent with it. They should for this purpose be sensitive to the same risk drivers that govern economic capital variations. The current Accord fails this test. ISDA has identified a range of key factors, and derived capital requirements based on these factors. For instance, credit risk charges are dependent on the tenor of the exposure, the default probability of the issuer, the loss given default on the facility, and diversification. Similarly, where analyzing contingent credit risk, ISDA has sought to link default correlation with essential parameters, such as the country of incorporation and industry of the obligors. Economic consistency is a pre-requisite for the proportionate recognition of risk mitigation (credit derivatives, operational risk insurance). Finally, ISDA strongly advocates the recognition of banks potential future exposure measures by the regulators in the calculation of counterparty risk charges. Simplicity: Regulators should also seek to avoid excessive complexity in developing new capital rules. These need to remain sufficiently simple, although robust, in order not to burden banks with disproportionately high implementation costs. To this end, ISDA suggests a framework for credit risk, where the same matrix of capital requirements applies whether or not the bank has been allowed to use its internal ratings for regulatory purposes. Similarly, the incorporation of credit risk mitigation in the framework is not differentiated according to whether the capital charges are internal ratings or external ratings-based. Incentives for good risk management: Finally, it is essential that regulators consider carefully whether minimum capital requirements are appropriate protection against the forms of risk under consideration. ISDA does not believe that charging against operational risk is sensible, since this risk is mostly endogenous and should therefore normally be addressed by adopting proper systems and controls. Establishing minimum capital charges against operational risk would lead to arbitrage, and runs the risk of discouraging the development of adequate controls, in particular if the charges applied bear little relation to the underlying risk. ISDA would suggest developing an assessment methodology for banks operational risk as part of Pillar II of the review, to ensure at least that regulatory intervention, if warranted, is proportionate to the level of risk incurred and quality of the controls in place. Similarly, it is proposed to address interest rate risk in the banking book as part of Pillar II. From a broader standpoint, ISDA welcomes the Committees emphasis on increased and improved supervision and also supports Pillar III of the review, in as much as disclosure can effectively foster market discipline. Throughout the response drafting process, ISDA has kept in close contact with banking regulators around the world, in the hope of being able to influence the Basel debate in its early stages. ISDA held discussions with the U. S. U. K. Japanese and French regulators, as well as the Basel Committees Models Task Force and the EU Commission. ISDA is a member of the U. K. Financial Services Authority Advisory Group on the review of the capital adequacy framework. ISDA has been invited by the Basel Committees Models Task Force to participate in a data-gathering project on loss given default (LGD), exposure at default and credit risk capital allocations. ISDA has welcomed this proposal for further dialogue, and hopes to be able to provide the regulators with meaningful information. ISDA will also produce a response in March 2000 to the European Commission consultative paper on capital adequacy, specifically addressing the comparative regulatory treatment of banks and securities firms. Credit Risk Modelling The testing exercise conducted jointly with the Institute of International Finance came to an end in late 1999. This concludes nearly two years of both quantitative and qualitative work on portfolio credit risk models, coordinated by both associations and involving 25 banks. This important piece of work has provided participants with a unique opportunity to compare models, in both their theoretical make-up and internal implementation. A major lesson learned from the testing process has been that models are directionally consistent, in other words react similarly to similar shocks, and that loss measures obtained for a given standardized portfolio tend to be consistent within model types. Further initiatives were launched during 1999 in the field of credit risk modelling, with a view to addressing the weaknesses that the Basel Committee believes prevent reliance on models for regulatory purposes: data scarcity and validation difficulties. As far as data is concerned, ISDA has initiated, together with Robert Morris Associates and the British Bankers Association, an LGD data pooling exercise for European banks. This will produce a European LGD benchmark, for use by members as a key input into their credit risk modelling, and by regulators, as a starting point where seeking to establish the reasonableness of banks LGD assumptions. In the field of model validation, ISDA has launched a joint project with the International Association of Financial Engineers, to create a library of academic-industry projects on credit risk modelling and validation. This will provide our membership with an opportunity to take part in some of the most advanced academic studies on this topic. Participation from regulators in this research pool is also envisaged. In 1999, ISDA continued to monitor and provide feedback to regulators on policy regarding the regulatory treatment of credit derivatives. The last year saw changes in regulation in Australia and Hong Kong and Singapore. In July, ISDA responded to guidance published by the Australian Prudential Regulation Authority (APRA). The Association welcomed the retention of trading book eligibility criteria and the treatment of maturity mismatches in the banking book: APRA proposes partial capital relief in tune with ISDAs proposal for a sliding scale of charges for forward credit risk. The Association further supported the treatment of maturity mismatches in the trading book, where APRA applies one specific charge as opposed to the two applied in some other jurisdictions. ISDA however, felt that the approach to first-to-default basket products was unduly conservative for both protection sellers and buyers. The Association also expressed concern about the lack of recognition of specific risk offsets in the trading book. In the autumn of 1999, ISDA studied proposals for new regulation produced by the Hong Kong Monetary Authority (HKMA). This guidance focused on credit derivatives in the banking book only. ISDA urged HKMA to clarify their approach to trading book eligibility. Transparency was also needed with regard to the treatment of maturity mismatches in the banking book, and of multiple name credit derivatives. Operational Risk Survey During 1999, the Association, in conjunction with the British Bankers Association and Robert Morris Associates (RMA), undertook a detailed and groundbreaking study of operational risk management. The study describes current practice and thinking on the definition, measurement and management of operational risk. Fifty-five major global financial institutions responded to a detailed survey questionnaire. The resulting study represents the first publicly available analysis and report on the rapidly evolving subject of operational risk technology. In addition to describing current organizational structures, policies, practices, and procedures, the study suggests alternative methods for managing operational risk and provides a methodology for approaching risk on an enterprise-wide basis. Exhibits and data track the evolution of operational risk management, providing a road map for institutions beginning to implement operational risk programs. The study also distinguishes between strategies utilized in a centralized management structure and those in place at the business unit level. Some of the topics addressed in the study include: Operational Risk and Shareholder Value Defining Operational Risk Trends in Organizing an Operational Risk Management Structure and Reporting An Inventory of Operational Risk Management Tools Including Self Assessment, Risk MapsProcess Flows, Risk Indicators, Escalation Triggers, Loss Event Database and the Integrated Use of Tools and Insurance Strategies. Interest in the survey has been widespread among institutions and industry regulators. In October, the Association, BBA and RMA accepted an invitation to present the preliminary results of the survey to the Basle Risk Management Committee. A successful presentation was also made at the Asian Regulators Forum in Singapore in October. In addition, the survey findings were discussed at conferences in London and New York in November. The survey is available on the ISDA website (isda. org). Risk Management Seminar Program ISDA continued its monthly lunchtime seminars in New York and London on risk management. These seminars provide useful updates on industry best practice and research in the field of risk management. A mix of institutions is represented, including practitioners, consultants, rating agencies and academics. The 1999 program focused primarily on operational risk and credit risk measurementmanagement. North American Program 1999 EUROPEAN REGULATORY ACTIVITIES European Commission Action Plan The impetus to create a genuine single market in financial services which had witnessed the establishment in 1998, with ISDA involvement, of the Strategy Review Group (SRG) continued into 1999. EU Finance Ministers in May responded to the European Commissions Communication on the work of the SRG by agreeing an important Action Plan on the steps needed to complete the single market. ISDA successfully lobbied Ministers on the need to move ahead more rapidly in the area of wholesale capital markets, where our priorities remained the need to allow interprofessional business to be regulated on a country of origin (or home country) basis, the need for action on collateral, and the need for more flexible legislation. The Action Plan priorities reflect these points. Over the summer, the Commission established five Forum Groups of industry experts from across the EU to advise on how to proceed and to translate these priorities into action. ISDA is represented by members on three groups: reform of the Investment Services Directive (ISD), collateral and market manipulation. Meanwhile, the high level financial services policy group Ministers set up at the Vienna European Council continued to meet to monitor progress. No concrete measures have, however, yet been proposed. Another important development in 1999 was the growing influence of the Forum of European Securities Supervisors (FESCO). In November 1999, FESCO issued a consultation paper on a proposed common definition of a professional investor. FESCO proposes defining authorized firms as professional, with sophisticated non-authorized firms able to opt in to that category. But it proposes no differentiation at this stage in the rules applicable, other than suggesting that more general principles might be appropriate for professionals. ISDA issued a response jointly with two other wholesale market trade associations calling for a more flexible definition that would more easily allow sophisticated investors to be treated as professional. ISDA also sent a paper to the ISD Forum group calling for home country control for interprofessional business. The European Commission indicated that it would follow the FESCO paper with a Communication in 2000 recommending how it should be applied in the context of the EU Directives and is thought to be sympathetic to ISDAs position. ISDA discussed both the FESCO paper and the implications for the ISD with the German, French and U. K. supervisors during late 1999. All are sympathetic to the need to treat professional investors with a lighter regulatory touch, but are unlikely to agree readily that home country control is the logical next step. Both FESCO and the Forum Group are similarly preparing the ground for European Commission action on market manipulation. Given the concerns over the changes to the U. K. regime in this area, ISDA will prepare a paper outlining the difficulties of proceeding with a directive when national differences in how manipulation is defined and policed persist and when there is no agreement on whether enforcement should be by home or host state competent authorities. European Parliament Intergroup on Financial Services ISDA passed the chairmanship of the industry advisory committee of the Intergroup to ABN AMRO for 1999. ISDA continued to work with the committee to raise the profile of financial services in the Parliament, and held several productive discussions, notably on the EU Action Plan and on electronic commerce. The 1999 elections, however, naturally interrupted our activities and, furthermore, the formal position of the Intergroup was thrown into question by the decision of the new Parliament to suspend all such groups pending a review. The Advisory Committee has decided nevertheless to continue with its activities as a forum for liaison with the Parliament and will continue with a full program for 2000. U. K. Financial Services Authority (FSA) Given the key role of London as a centre of OTC activity in Europe, ISDA has continued to follow the establishment of the FSA with great interest. The legislation creating the FSA as an integrated regulator spent most of 1999 in the U. K. Houses of Parliament and despite the constitutional innovations of a joint committee between the two Houses and the carrying over of the bill between two sessions, progress is being made slowly. Agreement is, however, likely in late Spring 2000. Industry lobbying focused on two main issues: the need for checks and balances on the FSAs new enforcement powers, which appear at odds with the European Convention on Human Rights, and on the need for the FSAs market abuse regime to include only intentional market manipulation. ISDA worked with a number of U. K. and international trade associations on these and a host of other issues throughout the year. On enforcement, the Government appears to have given some ground. The position on market abuse remains of some concern, since the Government refused to include an intent provision, but amendments to include a reasonable behaviour defence have been added and the FSA market code, to follow the bill, is expected to expand on this and to clarify that acting in accordance with FSA guidance provides a safe harbor. ISDA also provided comment in 1999 on various FSA consultative papers and participated in FSA discussions on a number of issues. The key topics for 2000 will be the emergence of new integrated prudential and conduct of business rulebooks, the FSA regime for interprofessional business and the FSA market abuse code. Settlement Finality Directive ISDA continued to monitor the implementation by member states of this Directive, which protects payment and securities settlement systems from action by liquidators which could unwind transactions and create systemic contagion effects. Article 9(2) of the Directive held particular promise by appearing to define the law applicable to dematerialized securities as the law governing the book entry system where they are held. This would be a welcome clarification in many situations, especially in the case of collateral held in the form of dematerialized securities and pledged between two participants in different jurisdictions. It appeared in subsequent discussions, however, that this Article does not require member states to apply it in all cases. ISDA has therefore joined others in pressing member states to implement it in a broad sense. Most member states, with the notable exception of Spain and the U. K. seem to have done so. U. S. REGULATORY ACTIVITIES There were three major areas of interest for ISDA in this regard in 1999: reform of the Commodity Exchange Act (CEA) financial services reform and bankruptcy reform. Reform of the Commodity Exchange As the U. S. Congress began to focus on reauthorization of the Commodity Futures Trading Commission, whose authorization expires September 30, 2000, the reform of the Commodity Exchange Act quickly became a focus of ISDAs North American regulatory efforts in 1999. ISDA participated in a number of legislative forums throughout 1999 in an effort to further the agenda for Congress to provide legal certainty for the OTC markets. Two ISDA Board members, Charles Smithson of CIBC and Ernest Patrikis of AIG, joined other businessmen, academics and regulators at a two-day roundtable held by the Senate and House Agriculture Committees at the end of February to discuss a wide range of issues in relation to both privately negotiated and exchange-traded derivatives. The Association also met with representatives of the Chicago Mercantile Exchange and the Chicago Board of Trade to discuss and consider their proposals for reform of the CEA. The Subcommittee on Risk Management and Specialty Crops of the House of Representatives Agriculture Committee held hearings on the CEA in May, at which ISDA was represented by Joe Bauman of Bank of America. Mr. Bauman stated ISDAs views that Congress should take legislative action to clarify that the CEA does not apply to OTC derivatives transactions and that Congress should also provide regulatory relief to the U. S. futures exchanges. In May, ISDA joined eight other industry groups in a letter to Rep. Tom Ewing, Chairman of the Subcommittee, urging Congressional action on reform of the CEA consistent with ISDAs objectives to provide greater legal certainty and promote market efficiency. On July 22, Rick Grove attended a working group hosted by Chairman Ewing to discuss a wide range of issues relating to the CEA. There, Mr. Grove reiterated ISDAs stance, which was supported by a number of other working group members. On November 9, 1999, the U. S. Presidents Working Group on Financial Markets issued its report Over the Counter Derivatives Markets and the Commodity Exchange Act. The reports recommendations (which were unanimously supported by the Secretary of the Department of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities Exchange Commission and the Chairman of the Commodity Futures Trading Commission, reaffirmed the need for legal certainty for OTC markets and urged Congress, among other things, to exclude from the CEA bilateral transactions (other than transaction involving non-financial commodities with finite supply) between sophisticated counterparties. Eight key financial groups joined ISDA in issuing a statement applauding the report and urging Congress to legislate legal certainty for the OTC derivatives markets. ISDAs only concern, which it raised with members of Congress and federal agencies, was the lack of CEA exclusion for energy and other commodity derivatives if they were considered to be transactions involving non-financial commodities with finite supply. During 2000, ISDA will parti cipate in Congressional hearings and will continue to work with the U. S. Congress and U. S. regulatory agencies to pass legislation implementing the recommendations of the Presidents Working Group. ISDA worked throughout the year to promote the passage of legislation to modernize the U. S. financial services system and to remove archaic boundaries to competition and market development. Just before their August recess, both houses of Congress passed version of financial modernization legislation. A conference committee quickly reconciled differences between the two versions, and in October 1999, a legislative milestone was reached with the passage into law of the Gramm-Leach-Bliley Act on financial modernization. The legislation established that commercial banks are able to conduct a wide rage of swap activities without interference from non-bank regulators. ISDA has been lobbying in favor of such a provision for many years. With the exception of a narrow class of retail equity swaps, banks will be able to conduct this business without any requirement that transactions be booked in or effected through any other entities. Throughout the consideration of the legislation, ISDA worked very closely with its members, consultants and other organizations to achieve this beneficial result. The Association continued to support the passage of bankruptcy reform legislation that clearly recognizes cross-product netting and promotes greater certainty for the netting of financial contracts. Bankruptcy reform provisions that affect financial contracts have wide support but have been included in legislation that includes more controversial consumer provisions. The U. S. Presidents Working Group on Financial Markets Over the Counter Derivatives Markets and the Commodity Exchange Act supported enactment of improvements in the netting regime for derivatives transactions under the U. S. Bankruptcy Code, echoing the recommendations in the Working Groups report on highly leveraged institutions, published in April 1999. ISDA will continue in 2000 to lobby strongly for appropriate legislative action in this regard. OTHER REGULATORY DEVELOPMENTS Reduction of Collateral Call CyclesThe Review was very well received by the industry, receiving the support of the Counterparty Risk Management Policy Group and a number of industry regulators. About half of the recommendations contained in the Review addressed improvements in collateral documentation. In July 1999, ISDA organized a further two-day offsite for senior collateral practitioners to discuss how the various recommendations should be implemented. This in turn led to the publication, in October 1999, of the first draft of a detailed set of instructions to external counsel requesting the development of revised ISDA collateral documentation that will reflect the improvements in collateral management practices suggested by the Review. It is intended that a revised set of ISDA collateral documentation (provisionally entitled the 2000 ISDA Credit Support Provisions) will be finalized during 2000. ISDA Collateral Benchmarking Survey The Review contains a summary survey of collateral volumes and management practices as of early 1999. Industry practitioners recommended that a more extensive survey of market practice would be of considerable value. During 1999, ISDA began to undertake such survey. A questionnaire containing approximately one-hundred questions, aimed at assimilating essential data, was prepared and was distributed to ninety-two institutions. The results of the survey will: Facilitate assessment of the challenges faced by collateral practitioners Indicate the operational standards to which institutions intending to manage collateral should aspire and Provide a benchmark against which institutions that already manage collateral can assess the efficiency of their operations relative to other industry participants. It is intended that the survey will be completed in the first quarter of 2000. European Collateral Law Reform Project In February 1999, ISDA formed the European Collateral Law Reform Group as a small ad hoc working group, whose brief was to map out the case for improving the legal infrastructure for secured transactions across the European Union. The group was asked to build on the paper ISDA had submitted to the European Commissions Strategy Review Group in 1998 in which ISDA had called for action in this area. As the groups work progressed, it quickly became apparent that there were issues that could and should be addressed in virtually every EU jurisdiction, and possibly at the EU level too. By the end of the year, the group delivered a report (available on the ISDA website) making a clear and compelling case for action. The report calls for European collateral arrangements to be based on the following key principles: Appropriate Rules: rules and procedures for implementing and maintaining a collateral arrangement should be simple, clear and cost-effective. Reduction of Formalities: cumbersome formalities such as registration, notification, filing and similar requirements should be abolished. Ability to Reuse Collateral: a collateral taker should be free to deal with the collateral until it is required to return it. Protection from Insolvency . a giver of pledge collateral (a pledgor) should be protected from the insolvency of the taker of that collateral (the pledgee). Law Chosen by Parties Should Govern: the law governing the creation and priority of the collateral arrangement should be the law chosen by the parties. Choice of Law Where No Law is Chosen: where no law has been chosen by the parties, the governing law should be the law of the place where the collateral is held, collateral held through an intermediary being deemed held where the intermediary maintains the account, register or other official record representing such collateral. Clarification of Status: the legal nature of a partys holding of securities in a clearing system should be clarified. Protection Against Third Parties: collateral arrangements should be protected from the rights of third parties. Protection Against Preferences: top-up deliveries of collateral under mark-to-market collateral arrangements should be protected from avoidance under preference and similar insolvency rules. At the same time as the Europe-wide summary report from which these principles are taken, this group also completed papers on each of the 15 EU jurisdictions, allowing market participants and authorities to compare and contrast in detail the situation in the constituent parts of the single European market. Use of collateral in connection with financial transactions is growing rapidly and the potential is particularly great in Europe. Legal obstacles represent an unnecessary barrier to that growth. On the positive side, the European Commission and the European Central Bank have both demonstrated their support for a more effective collateral regime for Europe and collateral features as a high priority action point in the Action Plan agreed by EU Finance Ministers in May 1999. In September, the European Commission set up a consultative Forum group to study the issue further. ISDA continues to work with the EU institutions and the Forum group going into the year 2000. At the same time, the work of the European Collateral Law Reform Group has attracted participation from the broad ISDA membership, making this project a major part of ISDAs portfolio. EUROPEAN ECONOMIC AND MONETARY UNION (EMU) Following extensive preparations in 1998, ISDA was not surprised by the smooth changeover to the euro. ISDAs five EMU Task Forces - Market Practice Documentation Operations Accounting Tax amp Capital and Legal amp Regulatory - had been instrumental over the previous two years in identifying the critical issues and finding solutions well in advance of the actual introduction of the euro. Some 1,200 members were active in these five Task Forces. ISDAs commitment to assisting the market in ensuring a smooth changeover was documented in the various publications, memorandums and updates such as ISDAs EMU Protocol and ISDAs Operations Guidelines, contained in the EMU Guidebook. Following the introduction of the euro, ISDA re-structured its Task Forces by forming the Euro Committee in its place. The Euro Committee met several times during the course of 1999 allowing members to reflect on their first experiences with the euro and discuss a number of post conversion issues. Euro Swap Conventions - reconfirmed in 1999: Floating day count basis: Actual360 Fixed rate day count basis: 30360 Business days: TARGET operating days should form the basis for euro business days Fixing period: two day rate fixing convention Coupon frequency: annual At the beginning of 1999, members of the Euro Committee agreed that it would be helpful to survey how market participants were applying the day count convention of ActualActual. As a result, ISDA published a survey which was distributed to all interested members and which aimed to provide feedback on the use of the euro conventions, as well as the treatment of legacy trades. The survey confirmed that the majority of euro trades (i. e. plain vanilla euro interest rate swaps) used 30360 as the fixed rate day count fraction. However, the survey also revealed that for euro swaps in which the fixed payments are designed to match cashflows on a fixed rate bond issue, the day count fraction applicable to the bond (typically, ActualActual) was used. The survey also indicated that more than one method of calculating ActualActual was being used. Discussions at the Euro Committee meeting showed that members would like ISDA to provide standard definitions allowing for the documentation of trades according to alternatives such as the ISMA and AFB methods. Accordingly, ISDA developed language intended to serve as a basis for incorporation into the 2000 ISDA Definitions, ultimately allowing members to document ActualActual according to the ISMA and AFB methods. In addition, market practice concerning EURIBOR rounding and interpolation has led ISDA to review the language in the 1991 ISDA Definitions and conclusions reached in the meetings of the Euro Committee also influenced the drafting reflected in the 2000 ISDA Definitions. The Euro Committee further discussed the question of which calendar to use for the settlement of ECU trades. The appropriateness of the approach taken by the majority of market participants, namely to follow the unofficial recommendation by the European Banking Federation (EBF) and use TARGET business days as the successor to ECU settlement days, was subsequently confirmed by the Bank of England in their PIQ (Practical Issues Quarterly), published on June 4. Members raised particular concern about the lack of available information in regard to national holiday calendars and TARGET operating days. ISDA has called on the European Commission and European Banking Federation to provide national holiday calendars as soon as possible and ISDA has also urged the European Central Bank to clarify when TARGET is expected to close in the years beyond 2000. A further matter that arose towards the end of 1999, following the announcement of additional TARGET settlement days, was the need for clarification on how to obtain a settlement rate for legacy trades (which are settled according to pre-1999 business day conventions) on national banking days which are not TARGET business days. ISDA continues to pursue this matter with the EBF, which sponsors EURIBOR. ISDA continues to discuss these topics with members of the Euro Committee. Further efforts will include consideration of whether there is a need to facilitate the redenomination of outstanding legacy transactions and the adoption of the euro by other countries going forward. ACCOUNTING amp DISCLOSURE ISDA continued to monitor developments in the field of accounting and disclosure in Europe throughout the year. The effects of standard setters interest in mark-to-market valuation for financial instruments is beginning to be felt. A disclosure recommendation from the European Commission was issued for comment and the possibility of a European Accounting Standards Board discussed. Many European members of ISDA are already affected by U. S. FAS 133, by virtue of having a U. S. listing. In this context, the position and influence of the London-based International Accounting Standards Committee is being closely monitored. As in North America, many firms continue to have serious concerns about the seemingly unstoppable move to fair-value accounting. Even where the principle is accepted, implementation remains an issue. The Federal Accounting Standards Board (FASB) voted on May 19 to delay the date for implementation of FAS 133 (Accounting for Derivative Instruments and Hedging Activities) for one year to fiscal years beginning after June 15, 2000, citing Y2K reprogramming concerns as the reason. ISDA submitted a letter in early May supporting calls for the delay. Also during the year, ISDA commented on the FASBs Exposure Draft regarding Transfer of Financial Assets, an amendment to FAS 125 that deals with recognition and measurement of the right to sell or repledge collateral held. In its comments, ISDA agreed with the Boards theoretical basis for recording the fair value of the contractual right to sell or repledge collateral by both the pledgor and receiver of collateral. ISDA also emphasized however that recording assets and liabilities as separate contractual rights is inappropriate when viewed in the context of a costbenefit analysis, since the value of the collateral rights are immaterial compared to the value of the related balance sheet amounts. ISDA supported an approach that does not require the reporting of the contractual rights and requires the recording of collateral assets only when a debtor defaults and is no longer entitled to redeem the collateral. In early 2000, FASB issued its final guidance which did not require the reporting of contractual rights. A new undertaking for ISDA in 1999 was the formation of an important new committee on equity derivatives. The Committee unites front-office and legal specialists and met for the first time in September. It has rapidly built up a portfolio of issues and addressed the more immediate ones, including the effect of changes to the method of calculating certain FTSE indices, at its first meeting in London in September 1999. More generally, the aim is to pursue further standardisation in relation to equity derivatives business practices, building on the platform established by the 1996 Equity Derivative Definitions. This includes promoting dialogue on how to provide for various forms of corporate action, where greater consensus would be of benefit to the market. The Committee is also monitoring accounting issues and reviewing training needs. ISDAs Energy Derivatives Committee identified standardization of documentation as its main challenge, given deregulation in the energy markets in Europe and the U. S. Existing transaction agreements do not address the sophisticated issues that can arise and, as trading increases globally, there will be a need for common documentation approaches. ISDA is revising the 1993 Commodities Definitions to include additional North American and European price sources, substantially increasing the scope of the document. ISDA membership in the energy community has continued to increase, and the committee is poised to play a larger role in 2000. During 1999, the work of ISDAs Operations Committee focused on technology developments in derivatives processing, with particular emphasis electronic messaging and automation of back office processes. ISDA reviewed vendor and industry-proposed solutions aimed at automating operations processes and observed and encouraged individual member efforts to achieve straight-through processing. ISDA prepared a memorandum to the membership reaffirming the acceptability of electronic confirmations in the event that certain members needed assurance that faxes, telexes, SWIFT and other automated messages can be used to confirm derivatives transactions. As FpML becomes an industry driven initiative, ISDA is staying abreast of its development to ensure its viability within the ISDA Operations and Documentation framework. In the last quarter of 1999, the Association developed an Operations Benchmarking Survey to address the membership needs for clear benchmarks for operations processing. The Operations Committee worked to develop the survey with an eye to understanding the challenges ahead of the business considering the mounting pressures of increased volumes, the pressure to decrease costs as well as to satisfy regulatory interests in operational risk. ISDA Par Rate Screens During 1999, there was an increasing acceptance of the screen service produced by the Association in cooperation with Reuters and Garban Intercapital Brokers Ltd. to facilitate the determination of the values of cash settled swap options. The relevant screens can be found at Reuters pages ISDAFIX1 through ISDAFIX4 (with backup information being displayed on Reuters pages ISDA10 through ISDA47). Following the introduction of the euro, new screens were established early in the year that benchmark against both EURIBOR and euro LIBOR. Currently, mid-market swap rates are published in relation to euro, U. S. Dollars, Japanese Yen, Sterling and Swiss Francs at various maturities. Enhancements to the service in September strengthened the rates and extended their application. Yen and euro rate tenors were extended to twenty and thirty years respectively. Quotes for EURIBOR and euro LIBOR are now displayed at both 11:00 a. m. Frankfurt time and 11:00 a. m. London time. Successful changes were made to panel compositions which have led to more consistent and regular quoting. The ISDA Market Practice Committee focuses on issues of concern to the trading community. Committee members considered the introduction of a presumption of automatic exercise of options to alleviate the potentially expensive problem of missed exercise of in-the-money options. Discussions in this regard will be reflected in the 2000 ISDA Definitions. The Committee also considered the establishment of parameters for the use of mutual puts however, no consensus has been reached on this. Other topics of interest to the Committee include the consolidation of portfolios between large counterparties, the potential impact of e-commerce on trading and electronic clearing and settlement systems. During 1999, ISDA continued its Confidential market survey activities, publishing the 1998 Year End Market Survey details for interest rate swaps, currency swaps and interest rate option products in 17 currencies. The figures for 1998 showed that notional principal outstandings continued strong growth during market disruptions in that year. The semiannual market report issued by the Association in June 1999 showed that worldwide growth in the use of privately negotiated derivatives, as measured in the notional principal of outstanding transactions, slowed to 3.4 in the first half of 1999. Notional amounts totaled 52.711 trillion at June 30, 1999 compared to 50.997 trillion six months earlier and 36.974 trillion one year earlier. The slowdown was believed to reflect the return of credit and currency stability from the exceptional volatilities associated with the Asian crisis, the Russian bond default and other events in the previous two years. Year-end figures for 1999 will be made available in the first quarter of 2000. Please click here for summaries of the survey results. As of 1998, ISDA streamlined its reporting, only collecting aggregate Flash Survey statistics for interest rate and currency swaps and interest rate option products. The Bank for International Settlements now produces a comprehensive survey of all segments of the OTC derivatives markets. During 1999, the Tax Committee monitored two issues of significance to the financial markets. The first of these was the now withdrawn Italian withholding tax on Italian-sourced derivatives. ISDA sought to clarify how firms should deal with the effects of the brief period when the tax was in force. The second issue addressed by the Committee was the potential introduction of a withholding tax on interest income across the European Union. This remains an issue as we approach 2000 and ISDA will continue to monitor any impact, direct or indirect, that this may have on derivatives markets. The Tax Committee wrote a letter in September to the Treasury and to the United States Internal Revenue Service urging the appropriateness of using values determined for financial reporting purposes for valuing derivatives for tax purposes. In addition, representatives of the Association and its membership met with Treasury and IRS officials in November to explain ISDAs position. The outcome of the meeting was further interest from the Service to learn more regarding various mark to market accounting methods. At the close of 1999, the issue remains open and ISDA will continue to educate the IRS and Treasury on its position as the need for clarity regarding appropriate valuing methods for derivatives transactions. The following is a list of the conferences organized by ISDA during 1999.
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