Re: Trip to Houston

Andy:
Enjoyed meeting with you.

One more thing I did not address. My ultimate goal is to move all volume to
EOL. However, in addition to the NYMEX, we have about 6 other viable
electronic trading systems. We make it a point to never support these if
possible. We will only trade if the other system's offer is at or greater
than our bid. For instance, if we are 6/8 but have a strong inclination to
buy and another system is at 7, I will simultaneously lift their 7's and move
my market to 7/9. The lesson the counterparty gets is he will only get the
trade if I'm bidding 7 and he will only get executed when it is a bad trade
to him. People have learned fairly quickly not to leave numbers on the other
systems because they will just get picked off. If they don't post numbers on
the other systems, the systems get no liquidity and die.

I mention this because I have heard that Enron is a fairly large trader on
Spectron's system. I don't know whether it is in regards to gas, power, or
metals. Just something to think about and maybe talk about with the other
traders.
John

Andrew Fairley
02/20/2001 11:15 AM
To: Phillip K Allen/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT, Scott
Neal/HOU/ECT@ECT, Thomas A Martin/HOU/ECT@ECT, Barry Tycholiz/NA/Enron@ENRON,
Keith Holst/HOU/ECT@ect
cc: David Gallagher/LON/ECT@ECT
Subject: Trip to Houston

Thank you so much for your time last week.

David and I found the time especially valuable. We have spotted several
issues helpful for our own market.
This should certainly help in the growth of our markets here in Europe. We
trust it won't be too long before we see similarly impressive results from
our side of the pond.

Best regards

Andy