|
|
Enron Mail |
Sara
Further to this can we look at the WTI-Brent spread trade and how this is handled. i.e. Who trades this? What book does it sit in? What legal entity is that book? Thanks Trena ---------------------- Forwarded by Trena McFarland/NA/Enron on 08/02/2001 08:55 --------------------------- Darren Maloney 06/02/2001 17:49 To: Trena McFarland/NA/Enron@Enron, Robert Bruce/NA/Enron@Enron, Sara Shackleton/HOU/ECT@ECT cc: Sheila Glover/HOU/ECT@ECT, Nigel Majury/LON/ECT@ECT Subject: Softs//Remaining Legal Questions Bob and Sara, I think the additional questions that need to be addressed are as follows. Once we have your input on these issues, our only remaining legal issues will revolve around (1) setting up NY brokerage, (2) actually setting up the different legal entities and related service agreements, (3) EOL product descriptions and (4) revisions to template ISDA agreements. Outstanding Issues: 1. Are personnel involved in a regulated brokerage business able to market OTC derivative products to clients without regulatory conflict? (Both US and UK) 2. Are there any special consideration s in terms of corporate organization or operations that we must use in order not to create conflict stemming from our OTC business as a regulated exchange member (both UK and US)? 3. To avoid regulatory burdens on other aspects of Enron and the Softs business, in what corporate entity will the NY clearing business reside? 4. For those counterparties looking to transact with ENA as principal, can we (1) provide parent guarantees for selected counterparties or (2) can we use ENA to take a trade via a back-to-back with ENA Softs, for example? 5. In regards to service agreements, is there a threshold of activity that establishes a tax or regulatory presence over and above any service agreement (ie- compromises the organizational structure)? 6. How would a Chinese Wall be structured between the brokerage and OTC businessses? General market information will likely need to be shared and some sharing between client and non-EOL broker will occur. Please lay out the concept and structure behind this mechanism so that we can better understand this. Please add comments as this is a checklist and likely not comprehensive. Regards, Darren 36661
|