Subject: RE: Bank of England Application
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 17 Oct 2001 02:50:54 -0700 (PDT)

I support the application.

Regards,

Jos? M. Hern?ndez

   -----Original Message-----
   From:       [email-masked] [SMTP:[email-masked]]
   Sent:       12 October 2001 17:59
   To:         [email-masked]
   Cc:         [email-masked]; [email-masked];
               [email-masked]; [email-masked]
   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