Online Trading Platforms

FYI
----- Forwarded by Sara Shackleton/HOU/ECT on 08/15/2000 12:15 PM -----

Mike Fowler@ENRON
08/15/2000 10:21 AM

To: Sheila Glover/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Jeff Kinneman/HOU/ECT@ECT, Madhur
Dayal/HOU/ECT@ECT
Subject: Online Trading Platforms

I am requesting that online trading agreements be executed with the following
bond trading platforms which we are evaluating:

Site Initial Corporate Bond Categories * Type Site Status

Buy Side Direct Convertibles (+ Equity Hedge) ** Cross Matching Aug 15th
Launch

Trading Edge / Bond Link High Yield, Convertibles Cross Matching Live

LIMITrader High Yield, Convertibles Cross Matching Live

Market Axess Investment Grade Multi-Dealer *** August Launch

* Additional corporate bond categories may be added in the future. For
example, Market Axess expects to add high yield and convertible bonds within
3 to 6 months.

** John Greene is aware that convertible bond transactions through Buy Side
Direct will involve offsetting equity hedges.

*** We have execution agreements in place with all current Market Axess
dealers.

Potential benefits offered by online sites include trading flows and improved
execution efficiency. In addition, these sites provide opportunities for
generating demand for EnronCredit.com credit derivatives, given that users of
these sites are buyers or sellers of corporate credit risk. The ability to
trade will greatly enhance our evaluation of these sites.

As noted above, 3 of the 4 sites are cross-matching, where trading is
completely anonymous and the site's sponsor or clearing firm are the nominal
counterparty for all trades. One of the 4 sites will be a multi-dealer
system where counterparties transact directly with a particular dealer.

Trades for all sites would be cleared through prime brokers with whom we have
existing agreements.

As you suggested, we should ensure that agreements with online trading
platforms allow for trading by ENA, ECT Investments and EnronCredit.com. My
understanding is that Sheila's group would coordinate the opening of any
additional accounts required to facilitate trading by each entity.

I suggest that Madhur Dayal be designated initially at the person to receive
notification of material changes to agreements. We should retain the ability
to change this contact person.

Thanks.

Mike
x39990