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Enron Mail |
Please see Tanya's response below to my inquiry about the EI/RMT ISDA. I am
asking Ted Murphy to comment on this situation as well. Regards, Pat ---------------------- Forwarded by Patricia Cini/HOU/ECT on 06/15/99 03:11 PM --------------------------- Tanya Rohauer 06/15/99 01:18 PM To: Patricia Cini/HOU/ECT@ECT cc: William S Bradford/HOU/ECT@ECT Subject: Re: RMT/EI Master Swap Pat, I don't think the authorization issue relates to "entering into a swap" but rather "holding a position". I think that as long as EI is not holding open a position, they are in compliance with authority controls. Basically, this means that as long as EI does every trade back to back, they are not violating any controls. So, if EI enters into a swap with a third party, they must immediately offset that risk with an identical (but opposite position) swap with ECT. In this manner, EI never takes market risk, only ECT does. We may need to verify this with Ted, but this is my understanding. The confirm desk may be able to tell us if any deals were confirmed under the RMT/EI master, but I don't think we would know since we do not monitor intercompany exposure. Thanks, Tanya Enron Capital & Trade Resources Corp. From: Patricia Cini 06/15/99 11:58 AM To: Tanya Rohauer/HOU/ECT@ECT cc: William S Bradford/HOU/ECT@ECT Subject: RMT/EI Master Swap Sara called Friday and advised that there is a Master Swap agreement between RMT and EI. Since Ted Murphy advised that EI should not be entering into any swaps, she is wondering about this ISDA. Is there a way to check to see if we have any existing transactions done under this ISDA? It looks like this was set up so that EI could back to back a trade with a Polish affiliate and RMT did a back to back trade with Merrill. Pat
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