I would let them in as long as they are not the regulator per se.

Do they audit in any form the financial institutions in England or perform
functions that falls within the ambit of Pillar II?

Terry
----- Original Message -----
From: "Robert Pickel" <RPICKEL@isda.org>
To: "ISDA BOARD" <BOARD@isda.org>
Cc: "Mary Cunningham" <MCUNNINGHAM@isda.org>; "Emmanuelle Sebton"
<esebton@isda-eur.org>; "Richard Metcalfe" <rmetcalfe@isda-eur.org>
Sent: Saturday, October 13, 2001 12:58 AM
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
>