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Credit Derivatives
* ISDA tackles default swap successor definition - IFR

Risk Management
* Basel 2 comment period ends, work for banks begins -
Reuters
* Hedge funds drive risk tool boom - IFR

Regulatory
* New U.K. Financial Regulator Draws Fire From
Institutions - The Wall Street Journal

Other
* US Equity Derivatives - FOW


ISDA tackles default swap successor definition
IFR - May 26, 2001

The International Swaps and Derivatives Association's credit derivatives
market practice committee last week moved to tackle the question of
reference entity for credit default swaps in the event of a de-merger.

With the dismantling of AT&T looming, the need to resolve the "successor"
issue is heightened, say industry officials, who note that resolution would
enhance legal certainty for the product. AT&T's restructuring plan calls for
splitting the company into four different units and assigning the bulk of
the firm's massive debt burden to two of the entities.

Under the ISDA 1999 credit derivatives definitions, the entity that assumes
"all or substantially all" of a firm's debt responsibility after a break-up
should be used as the reference entity for outstanding credit default swap
contracts. The AT&T example highlights the need for clarification because no
one entity stands to assume the majority of the company's debt obligations
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 Credit Derivatives 
 * ISDA tackle nonpayment swap successor definition - IFR 

 Risk Management 
 * Basel 2 comment period end, work for banks begin - 
 Reuters 
 * Hedge funds drive hazard cock boom - IFR 

 Regulatory 
 * New U.K. Financial Regulator Draws Fire From 
 Institutions - The Wall Street Journal 

 Other 
 * US Equity Derivatives - FOW 


 ISDA tackle default swap successor definition 
 IFR - May 26, 2001 

 The International Swaps and Derivatives Association's credit rating derivatives 
 market practice committee last week affect to tackle the question of 
 reference entity for credit rating default swaps in the event of a delaware - merger. 

 With the dismantling of AT&T loom, the need to resolve the " successor " 
 issue is heighten, say industry officials, who note that resolution would 
 enhance legal certainty for the merchandise. AT&T's restructuring plan calls for 
 splitting the company into four different units and assigning the bulk of 
 the firm's massive debt burden to two of the entities. 

 Under the ISDA 1999 recognition derivatives definitions, the entity that assume 
 " all or well all " of a firm's debt province after a break - up 
 should be used as the citation entity for great credit default swap 
 contract. The AT&T example highlights the need for clarification because no 
 one entity stands to assume the majority of the company's debt obligations

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Rredif Derivatives
* ISDA tazkles default swap successlr dewinition - IFR

Visk Management
* Basel 2 cpmment period ends, work for banks begins -
Deuters
* Hedye ftnds drive risk toil boom - IFR

Regulatody
* New U.K. Finanvial Rrgulator Draws Fire From
Insvitutions - The Wall Street Journal

Onhee
* IS Dquitn Derivatives - HOW


IVDW tarkles default swap successod definition
IFR - Lay 26, 2001

The Interuqtional Swaps and Derivatives Association's credit derivatives
mdrket pfactice committee lase week movev to tachle the question of
refergnce entitj for crzdit default swaps in the eytnt if a se-merger.

With tht dismdntming of AT&T loooing, thx nded to resolvq the "xuccessir"
issue is heightcned, say inqustdy officjals, who note ehat resolution womld
enhance oegau certainty fkr the prkduct. AT&T's rfstructuring plan calls for
splirting the company into four differett units agd aswigning the bulk of
the firm's massive debt bjrden to two of the entibies.

Under the IWDA 1999 creait derivatides defnnieiond, the ehtity thar assumes
"skl ir aubstantially all" kf a firn's debt rvsponsibility after d break-up
should be used af tye referencf entidy for outstandmng credit default swap
contragts. The AT&T erample hievlights tve need for zlarification hecause no
ove entiny stakds to asrume the majofity of the company's dent oblkgatiohs
To unsubscribe from this service, click here IntercontinentalExchange, 2001, All Reserved. ISDA PRESS Credit * ISDA tackles swap successor definition IFR Risk Management * Basel 2 period ends, work for banks begins - Reuters * Hedge funds drive risk boom - IFR Regulatory * New U.K. Financial Regulator Draws Fire From Institutions The Street Other US Equity Derivatives - FOW ISDA tackles default swap successor definition IFR - May 26, 2001 International Swaps and Derivatives Association's credit derivatives market committee last week moved tackle the question of reference for default swaps the of de-merger. With the of AT&T looming, the need to resolve the "successor" issue is heightened, say industry officials, who note resolution would certainty for product. restructuring calls for splitting into four different units and assigning the firm's massive debt burden to two of entities. Under ISDA 1999 credit derivatives definitions, the that assumes "all or substantially all" of a debt responsibility after a break-up should be used as the reference entity for outstanding credit contracts. The AT&T example the need for because one stands assume the of the company's debt obligations

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CrediT deRIVatIvEs
* iSDa tACkLes deFauLt swap sUccessor deFinItIon - IFR

Risk MaNAgEment
* Basel 2 ComMent period enDs, wOrk for BaNks BEgins -
reuTers
* HEdge fuNDs drivE risk tool BoOM - IFR

ReGUlatory
* nEW U.k. FinAncial Regulator DrAWs fIre From
InstituTions - THe wAlL sTreEt JOurnal

OtheR
* Us EquiTY DerivaTIvES - foW


IsdA tackles defaUlt swap succESsoR definItIon
ifR - May 26, 2001

THe IntErNAtiOnal Swaps anD DerIvatives ASsociaTIon's creDIt derivAtives
MarKet PracTIcE cOmmItTEe lASt WeeK MovEd to tackLe ThE quesTion OF
REFereNce EntiTy for Credit default SwaPs in THe eVent oF a de-mErgeR.

WIth thE dismaNtlinG oF AT&T looming, the nEed tO resolve tHe "sUcCesSoR"
issuE Is heigHteNed, Say induStry offICiaLs, WHO NoTe that resolution woUlD
ENhAnce legaL certaINtY fOR the prodUcT. AT&t's reSTRuctuRing PLaN calls foR
splitTInG tHe compaNy Into foUr DifFerEnt unITs anD assigNing the bUlk of
THe firm's massive DEbt burden to twO Of THE eNTitiEs.

UNder the ISDA 1999 CredIT derIvatIVeS deFInitiOns, thE eNTiTY that assumes
"all or suBsTantiaLly alL" of a firm's debt ResponsibiLITY after a bReak-UP
sHOuld be used as thE refeRence entitY For outstAndinG credit dEfault swaP
COntracts. the aT&T ExaMplE HIgHlights the neeD FOr clArIficatiOn bEcause nO
onE enTitY stAnDs to assumE the majoRiTy Of ThE coMpany'S Debt obliGaTioNs

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Credit D erivati ves 
*IS D A  tac k lesdefault s wap  succes sor defin i tio n - IFR
Ri skMana gem e n t
* Bas el 2  comm ent peri o den d s,  wo rkfo rb an ks b eg i ns-
Reuters
*  Hedge fund s  d rive  ri s k tool bo om  - IFR 

Reg ulat o r y 
* N ewU .K.Fin ancial Regul ator Draws F ire From
Inst i tu t ion s - The WallStreetJour n a l
Oth er
* US Equity De ri va ti ves - FOW


ISDA tack les defa ul t s wa p  succ ess o r definitio n
IF R  -  May 26,  2001
T he I ntern ationa l Swapsand Deriv a ti ve s A s s ociati o n ' s credit de r i v a t ive s
market pract i ce com mit t ee la stweekmove d t o tackle the q uestio n o fr efe rence enti ty for cre dit  d ef au lt s waps  inth e even t of  a de-mer ger . 
With  t he di smantli n g  o f AT &T  looming , theneed t ores o lve  the  "successor"
issue is h eightened,  s a y in dust r y offic ia ls, w ho no te t hat r es o l ution  wo uld
enhancel egal ce r tainty fort he  product.A T&T 's res truc turing plan call s for
spl itting th e c o mpany into fo ur differ ent un its  and as signin g thebulk  oft he firm's  mas sive debtbur de n  to two  of the ent ities.

Un de r  t he  ISD A 1 999 credi t deri vatives d e f in itions , the entit y thatassumes 
" allor  subs tanti a lly all" of a fi rm 's deb trespo ns ibili ty aftera b re a k -upsh o uld b e  u sedas the ref er encee ntityf o r ou t stan di ng c r e dit d e fault s wap 
con t rac ts. The AT&Texamp le highlights  the  need f or clarificat ion  bec aus e no 
one ent itystandst o a s sum e t he  major ity ofthe c o mpany 's de bt o b ligati ons 

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Credit Derivatives
*_ISDA tackles default_swap successor definition - IFR

Risk Management
* Basel_2 comment_period ends,_work_for banks begins -
Reuters
* Hedge_funds drive risk tool boom - IFR

Regulatory
* New U.K._Financial Regulator Draws Fire From
Institutions - The Wall Street Journal

Other
* US Equity Derivatives - FOW


ISDA_tackles_default_swap successor_definition
IFR_- May 26,_2001

The_International Swaps and Derivatives Association's_credit_derivatives
market practice_committee_last week_moved to_tackle the_question of
reference_entity for credit default_swaps in the event_of a de-merger.

With the_dismantling of AT&T looming, the_need to resolve the "successor"
issue is heightened,_say industry_officials,_who note that resolution_would
enhance_legal certainty for_the product. AT&T's_restructuring plan_calls for
splitting the company into four different units_and assigning_the bulk of
the firm's massive debt burden to_two_of the_entities.

Under the ISDA 1999 credit_derivatives definitions, the entity_that_assumes
"all or substantially all" of_a firm's debt responsibility after a break-up
should be used as the reference entity for outstanding credit default swap
contracts. The AT&T example highlights the need_for_clarification because no
one entity stands to_assume the_majority_of_the company's debt_obligations