Trading on Inside Information

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 11/01/2000
01:18 PM ---------------------------
From: James D Steffes@ENRON on 11/01/2000 02:28 PM
To: Lisa Yoho/HOU/EES@EES, Robert Frank/NA/Enron@Enron, Christi L
Nicolay/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@ENRON
cc: Richard Shapiro/NA/Enron@Enron

Subject: Trading on Inside Information

In a meeting yesterday with some ENA traders, it was argued that in the
finanical markets people are not allowed to trade in a stock if they have
material information that would move the market.

In the power business, people that control 15,000 MW are allowed to buy and
sell financial products with the "inside" knowledge that their units may be
off. Is this illegal or could we make it illegal? What are the restrictions
here?

I guess the issue also involves CFTC regulation, or lack of regulation? If
FERC has the field, why don't we continue to push for more market
transparency?

Jim