The ISDA Collateral Committee has undertaken a comprehensive review of the 1998 Guidelines for Collateral Practitioners. The 2005 ISDA Collateral Guidelines (the “2005 Guidelines”) also revisit some of the recommendations made in the ISDA 1999 Collateral Review.

The 2005 Guidelines are intended to:

• Document the state of collateral management practice at the end of 2004.
• Discuss the nature and mechanics of collateralization, including the key legal foundations.
• Describe the interaction of the collateral management function with other areas of the firm.
• Identify the benefits and risks of collateralization.
• Outline current trends and possible future developments in collateral management.

The 2005 Guidelines takes a comprehensive approach to the many different facets of collateral management. Among the topics addressed are:

• Collateral as a Risk Management Tool;
• Collateral Management Function;
• Documentation for Collateral;
• Margin Call Process;
• Managing Collateral Assets and
• Trends in Collateral Management.