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Enron Mail |
Please approve the following change to the product description. If you have
any questions please let me know. Steve needs this approved as soon as possible. Thanks, Melba 58986 Bolded for your ease of reference: From: A currency Transaction with Risk Management & Trading Corp. ("RMT") under which either (A) for the case in which Counterparty submits an offer to buy from RMT, Counterparty shall pay a Fixed Amount and shall receive the Floating Amount, or (B) for the case in which Counterparty submits an offer to sell to RMT, Counterparty shall receive the Fixed Amount and shall pay the Floating Amount. Each calendar month during the term of the Transaction will be a Determination Period; provided however, that in the event the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. The Notional Amount per Determination Period shall equal the volume submitted by the Counterparty via the website divided by the number of Determination Periods during the term of the Transaction. The Fixed Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the price submitted by the Counterparty via the website. The Floating Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the Index. The Payment Date shall be the Valuation Date. The term of the Transaction shall be from the Effective Date of 01 Feb 2001 to the Termination Date of 01 Feb 2001. The Index for each Determination Period shall be the USD/CAD rate equal to the rate set forth on Rueters page BOFC under the headings 'Bank of Canada'; 'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 12:00 p.m. noon, Toronto time, on the Valuation Date. The Valuation Date for each Determination Period shall be the last Business Day of such Determination Period. The price is quoted in Canadian Dollars per unit of volume, which will be the Contractual Currency. The unit of measure against which the price is quoted shall be US Dollars, and each unit of volume shown represents one million US Dollars ($1,000,000). To: A currency Transaction with Risk Management & Trading Corp. ("RMT") under which either (A) for the case in which Counterparty submits an offer to buy from RMT, Counterparty shall pay a Fixed Amount and shall receive the Floating Amount, or (B) for the case in which Counterparty submits an offer to sell to RMT, Counterparty shall receive the Fixed Amount and shall pay the Floating Amount. Each calendar month during the term of the Transaction will be a Determination Period; provided however, that in the event the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. The Notional Amount per Determination Period shall equal the volume submitted by the Counterparty via the website divided by the number of Determination Periods during the term of the Transaction. The Fixed Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the price submitted by the Counterparty via the website. The Floating Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the Index. The Valuation Date for each Determination Period shall be the first Business Day of such Determination Period. Thank you, Melba 58986 Steve Jacobellis@ENRON 11/30/2000 12:20 PM To: Dale Neuner/HOU/ECT@ECT cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT Subject: Re: EOL description change In order to get around the wording on the Jan 02 product, how about if it states "The Valuation Date for each Determination Period shall be the first Business Day of such Determination Period." This way the determination period is still one calender month and instead of the payment being the last day it will be the first day of the month. Let me know if you think this will work. Thanks, Steve Dale Neuner@ECT 11/30/2000 10:18 AM To: Steve Jacobellis/NA/Enron@ENRON cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT Subject: Re: EOL description change The last line in the first paragraph (which is the Product Type description) states that the The Payment Date is the Valuation Date. This was written specifically to be able to handle day-long and month-long transactions, as the Index states that the Valuation Date is that last day of each Determination Period. That being the case, the language being proposed would alter the operation of Valuation Dates as they relate to month-long transactions, so we should not make the change. Dale Steve Jacobellis@ENRON 11/30/2000 09:13 AM To: Dale Neuner/HOU/ECT@ECT cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT Subject: Re: EOL description change The valuation date is agreed upon on the point and click because the product is a Jan 02, 2001 product. That is the settlement date for the transaction. Steve Dale Neuner@ECT 11/30/2000 09:08 AM To: Steve Jacobellis/NA/Enron@Enron, Robert B Cass/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT cc: William Stuart/HOU/ECT@ECT Subject: EOL description change I am forwarding this to Rob and Melba, who will assist you with this, as I am no longer involved in the day-to-day work regarding the development of Products for EnronOnline. Rob/Melba/Steve: One question comes to mind immediately; the suggested language states "The Valuation Date for each Determination Period shall be the date submitted by the counterparty." When is this date being submitted, and how is this submission taking place? Please investigate this. I would think that (i) if the Valuation Date of the transaction is unknown on Trade Date then the integrity of the economics of the deal hasn't been established, and (ii) if this requires a follow-up phone call after the trade is done on EOL, the 'point and click' trading isn't accomplished. Dale ---------------------- Forwarded by Dale Neuner/HOU/ECT on 11/30/2000 08:28 AM --------------------------- Steve Jacobellis@ENRON 11/29/2000 05:00 PM To: Dale Neuner/HOU/ECT@ECT cc: William Stuart/HOU/ECT@ECT Subject: EOL description change Dale, Below are proposed descriptions of two EOL products that we need to change. Our Calgary office needs to change the settlement date for these products so I changed the descriptions to match their wishes. These products are not active yet because I need to switch the descriptions in the product manager. The proposed changes are in bold faced type. Do you do that or am I able to change the product description in the product manager? Also, are we able to just switch the description or do we need to get approval from someone else? if you have any questions please call me at extension 3-7214. Thanks, Steve For Curr Par Fwd Reuters BOFC 02Jan01 CAD/USDm A currency Transaction with Risk Management & Trading Corp. ("RMT") under which either (A) for the case in which Counterparty submits an offer to buy from RMT, Counterparty shall pay a Fixed Amount and shall receive the Floating Amount, or (B) for the case in which Counterparty submits an offer to sell to RMT, Counterparty shall receive the Fixed Amount and shall pay the Floating Amount. Each calendar month during the term of the Transaction will be a Determination Period; provided however, that in the event the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. The Notional Amount per Determination Period shall equal the volume submitted by the Counterparty via the website divided by the number of Determination Periods during the term of the Transaction. The Fixed Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the price submitted by the Counterparty via the website. The Floating Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the Index. The Payment Date shall be the Valuation Date. The term of the Transaction shall be from the Effective Date of 02 Jan 2001 to the Termination Date of 02 Jan 2001. The Index for each Determination Period shall be the USD/CAD rate equal to the rate set forth on Rueters page BOFC under the headings 'Bank of Canada'; 'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 12:00 p.m. noon, Toronto time, on the Valuation Date. The Valuation Date for each Determination Period shall be the date submitted by the counterparty. The price is quoted in Canadian Dollars per unit of volume, which will be the Contractual Currency. The unit of measure against which the price is quoted shall be US Dollars, and each unit of volume shown represents one million US Dollars ($1,000,000). For Curr Par Fwd Reuters BOFC Dec00-Mar01 CAD/USDm A currency Transaction with Risk Management & Trading Corp. ("RMT") under which either (A) for the case in which Counterparty submits an offer to buy from RMT, Counterparty shall pay a Fixed Amount and shall receive the Floating Amount, or (B) for the case in which Counterparty submits an offer to sell to RMT, Counterparty shall receive the Fixed Amount and shall pay the Floating Amount. Each calendar month during the term of the Transaction will be a Determination Period; provided however, that in the event the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. The Notional Amount per Determination Period shall equal the volume submitted by the Counterparty via the website divided by the number of Determination Periods during the term of the Transaction. The Fixed Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the price submitted by the Counterparty via the website. The Floating Amount payable per Determination Period shall equal the product of the Notional Amount per Determination Period multiplied by the Index. The Payment Date shall be the Valuation Date. The term of the Transaction shall be from the Effective Date of 01 Dec 2000 to the Termination Date of 31 Mar 2001. The Index for each Determination Period shall be the USD/CAD rate equal to the rate set forth on Rueters page BOFC under the headings 'Bank of Canada'; 'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 12:00 p.m. noon, Toronto time, on the Valuation Date. The Valuation Date for each Determination Period shall be the first Business Day after the end of such Determination Period. The price is quoted in Canadian Dollars per unit of volume, which will be the Contractual Currency. The unit of measure against which the price is quoted shall be US Dollars, and each unit of volume shown represents one million US Dollars ($1,000,000).
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