Re: MG Metals: Additional Areas to Look at

Dear Richard,

Thanks for your message - I just met Lloyd Fleming who is setting up meetings
for me and getting me some of the information requested. Houston Research
has started on this process, but I believe that I will take over from here -
I am in Houston in 10 days time and will also discuss initial findings with
them.

Regards,

Anjam Hmad
London Research
x35383

Richard Sage
30/06/2000 09:50
To: Anjam Ahmad/LON/ECT@ECT
cc:

Subject: MG Metals: Additional Areas to Look at

Phil Redman will come to see you to capture appropriate tasks on the overall
project plan and identify dependencies.
I hope Lloyd has kept you up to date so far.
I have added you to the address list for daily updates affecting the Support
functions.
---------------------- Forwarded by Richard Sage/LON/ECT on 30/06/2000 09:50
---------------------------

Enron Europe

From: Anjam Ahmad 30/06/2000 09:46

To: Lloyd Fleming/LON/ECT@ECT, Richard Sage/LON/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Bjorn
Hagelmann/HOU/ECT@ECT, Dale Surbey/LON/ECT@ECT, Tanya Tamarchenko/HOU/ECT@ECT

Subject: MG Metals: Additional Areas to Look at

Dear Lloyd & Richard,

I have been discussing with Eric Gadd about two particular areas of concern
that will affect the London Research Group. I believe there are a number of
issues to address to ensure that the integration goes smoothly from a risk
management and quantitative analysis perspective, and I have put together a
(by no means exhaustive) list:-

i) seamless transfer of front and middle office systems from an exotic
options linking perspective (e.g. their spreadsheets link to different option
pricing add-ins)
ii) development of volatility curves and factor analysis to ensure that we
can capture metals risk in our VaR system (we will require historical data
for this). I am sure Bjorn will be looking to the Research Group to assist
in this matter.
iii) ensure that MG staff on quant and risk side become familiar with our
methods and systems and vice versa

These tasks will involve a significant degree of cross-communication with
relevant contacts within MG metals, and so I look forward to starting on the
process as soon as possible - I hope to play a full part from a quantitative
research and risk management perspective to ensure that everything goes
smoothly in this exciting new development, so please do not hesitate to
involve me.

Best regards,

Anjam Ahmad
Research
x35383