Response to the International Swaps and Derivatives Association Position
Paper (Testimony, 06/14/94, GAO/T-GGD-94-163).

In May 1994, the International Swaps and Derivatives Association issued
a position paper on GAO's report on financial derivatives
(GAO/GGD-94-133, May 18). Although it believed that GAO's report
contained valuable information and useful suggestions, the Association
disagreed with several of GAO's conclusions and recommendations, arguing
that many of GAO's recommendations were not supported by the facts
presented and suggesting that their adoption would raise costs and
reduce the availability of derivatives products. GAO recommended
extending basic regulatory safeguards and prudent corporate governance
to the currently unregulated major derivatives dealers, improving the
regulatory oversight of bank derivatives dealers, and increasing
accountability for major end-users of complex derivatives and improved
disclosure and accounting standards for users of derivatives. This
testimony outlines GAO's responses to the Association's positions.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-94-163
     TITLE:  Response to the International Swaps and Derivatives 
             Association Position Paper
      DATE:  06/14/94
   SUBJECT:  Banking regulation
             Securities regulation
             Brokerage industry
             Financial management
             Internal controls
             Risk management
             Information disclosure
             Accounting procedures
             International economic relations

             
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