ISDA has written to Treasury on its plans to make insolvency regulations in relation to investment banks. It supports Treasury's plan to take legislative steps only if market practice and regulatory approaches do not work. It endorses the view that sophisticated counterparties should have as much flexibility as possible. It notes the interaction of any regime for investment banks with existing regimes must be clear but does not currently see a compelling case for changes to the current regime. It also comments on treatment of open positions on failure, drawing a distinction between derivatives and other positions. Finally, it thinks there could be improvements to administration following a collapse, particularly to speed up return of client assets.