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Enron Mail |
Each legal trading group here in Houston checks on a relevant counterparty's
ability to trade its products. So far the only physical trading area where a governmental counterparty appears to have problems is the power trading group where there are licensing requirements that may or may not have been obtained to trade power. For financial trading we do have to inquire into the relevant governmental entities' authority to enter into derivative transactions. In order to do that we look at statutory authority, any relevant local regulations, investment policities, etc., in addition to obtaining legal opinions on the subject, and with some counterparties hiring outside counsel to advise us. For most governmental entities if we do not have an ISDA Master in place and have already done such due diligence, I will not be approving them to trade financial products. As far as the financial test, for the US based counterparty list, I check with Credit on every counterparty to determine whether they meet the US eligible swap participant standards. As I'm sure you know, for most plain vanilla corporates and partnerships this means having total assets of $10mm or a net worth of $1mm. Pretty much, if I am turning down a counterparty to trade financial it will be because they do not meet the ESP test or they are a governmental or quasi-governmental entity. If what you are telling me is that the Australian counterparties have to meet a $6mm asset test to trade any products, then I will add this to my daily inquiry to Credit and turn down Australian counterparties if they do not meet this test. At your direction I will handle this in this manner. How would you like me to proceed? David Minns@ENRON_DEVELOPMENT 08/16/2000 07:58 PM To: Tana Jones/HOU/ECT@ECT cc: Subject: Re: EOL Credit Responses 08/14/00 Is this an incorporated entity? I assume its authority to trade a range of products has been checked out? In Australia this assumption can not be made for government entities Under our licencing requirements we need to make reasonable enquiries that a counterparty has (or is guaranted by someone who has) atleast USD6 million in assets. Can this assumption be made? From: Tana Jones@ECT on 16-08-2000 08:39 CDT To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: EOL Credit Responses 08/14/00 Tauton is ok for all products, except for financial products (it can do power). David, when I talk about this I am never including credit derivatives unless Credit specifically tells us in their spreadsheet that this is a credit derivatives counterparty. David Minns@ENRON_DEVELOPMENT 08/15/2000 05:32 PM To: Tana Jones/HOU/ECT@ECT cc: Subject: Re: EOL Credit Responses 08/14/00 Tana what can the Taunton Municipal Light Plant trade? Is it the same as Huntsville? From: Tana Jones@ECT on 15-08-2000 01:35 CDT To: Alan Aronowitz/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, David Portz/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marie Heard/Enron Communications@Enron Communications, Robbi Rossi/Enron Communications@Enron Communications cc: Subject: EOL Credit Responses 08/14/00 ----- Forwarded by Tana Jones/HOU/ECT on 08/15/2000 01:35 PM ----- Bradley Diebner 08/14/2000 05:27 PM To: Frank L Davis/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT, Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON, Claudia Clark/HOU/ECT@ECT cc: Subject: EOL Credit Responses 08/14/00 The EOL approvals for 08/14/00 are attached below. Regards, bd
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