I think that the BOE should be admitted to membership.

Also, Bob, about the Hong Kong Monetary Authority (HKMA), following the
recent seminar we did for them in HK, I think that we are likely to hear
more from them about membership. Frankly, it is easy for me to raise the
issue with David Carse/Simon Topping, which might well precipitate a formal
application, but obviously I would rather not do so without hearing further
from the Board about the potential success of such an application.

It is probably best if I write separately about the HKMA and its functions
including why membership for them might make sense. At that point, further
discussion would be useful.

Regards







Robert Pickel <RPICKEL@isda.org> on 12 Oct 2001 23:58

To:   ISDA BOARD <BOARD@isda.org>
cc:   Mary Cunningham <MCUNNINGHAM@isda.org>
      Emmanuelle Sebton <esebton@isda-eur.org>
      Richard Metcalfe <rmetcalfe@isda-eur.org>
                                               
 Our Ref:               Your Ref:              
                                               


Subject:  Bankof England Application


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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





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