The International Swaps and Derivatives Association, Inc. (ISDA) today made the following comment on New York Governor David Paterson’s call on the Federal Government to regulate the credit default swap market:
"There is a welcome role for regulators to review the activities of those they regulate, and in that vein the State Insurance Department can and should monitor all the activities of NY insurance companies including their swaps business. However, going beyond this common sense approach threatens to disrupt global derivatives markets which have continued to function amidst the current turmoil. The State of New York should proceed very cautiously and in consultation with Federal regulators before acting in a way that may ultimately cause more harm than good," said Robert Pickel, executive director and ceo, ISDA.
