RE: Bank of England Application

I support the application.

Regards,

Jos? M. Hern?ndez

-----Original Message-----
From: RPICKEL@isda.org [SMTP:RPICKEL@isda.org]
Sent: 12 October 2001 17:59
To: BOARD@isda.org
Cc: RPICKEL@isda.org; MCUNNINGHAM@isda.org;
esebton@isda-eur.org; rmetcalfe@isda-eur.org
Subject: Bank of England Application

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