Re: Bank of England Application

I would let them join, under the conditions outlined in the first paragraph ob
Bob's mail.

Lucinao Steve

Robert Pickel wrote:

< Shortly before the teleconference Board meeting two weeks ago we received an
< application from the Bank of England for subscriber membership. When we have
< considered central banks or government agencies for membership in the past,
< consideration has focused on the nature of the applicant's derivatives
< activities, its regulatory role and the type of information they are likely
< to obtain from ISDA. Because of their derivatives activities, we have
< generally admitted these applicants (e.g., the Kingdoms of Belgium, Denmark
< and Sweden, the Reserve Banks of South Africa and New Zealand). We have even
< admitted the Bank for International Settlements as a member. In general, we
< let them know that they may not be able to receive the full range of ISDA
< materials (e.g., draft comment letters or position papers) and that there
< may be a need to exclude them from certain committees or discussions.
<
< In previous Board discussions, a higher degree of concern has been expressed
< if, theoretically, the Federal Reserve, the Bank of Japan, the Bank of
< England or similarly influential central banks were to apply for membership.
< These central banks typically have a greater degree of involvement in the
< regulatory debates (particularly on capital) and are better positioned to
< influence the process.
<
< Since some of those previous debates, the regulatory role of the Bank of
< England has diminished and the role of the Financial Services Authority has
< correspondingly increased. The Bank of England still plays the traditional
< central bank roles of controller of the money supply, dealing in the market
< and lender of last resort, but the supervisory role has shifted to the FSA.
<
< In light of these developments, but recognizing the concerns previously
< expressed on central bank membership, I would appreciate your views on the
< application of the Bank of England. We have also had overtures from the Hong
< Kong Monetary Authority regarding membership although we have not received
< an application.
<
< Please share your views with the other members of the Board.
<
< Bob