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Enron Mail |
The online bond trading sites we are evaluating have stated that they and
their clearing broker are our nominal counterparties. However, I was informed yesterday by Weiss, Peck & Greer that our exposure on affirmed trades is to our prime broker. (Our prime broker has exposure to the site's clearing firm.) We confirmed this with our prime broker and with Sheila Glover. Thus, statements that 1) transactions will be cleared through our prime broker and 2) the site is responsible for the accuracy of terms of offers and executed trades (as Buy Side Direct added) may sufficiently address the issue of our exposure. Please let me know if you would like to discuss. Thanks. Mike 713-853-9990 ---------------------- Forwarded by Mike Fowler/Corp/Enron on 09/13/2000 02:08 PM --------------------------- Mike Fowler 09/12/2000 03:49 PM To: PETEJ@andrews-kurth.com cc: Sara Shackleton/HOU/ECT@ECT Subject: Weiss, Peck & Greer Agreement Weiss, Peck and Greer (WPG) has addressed the fee and margin issues noted in my previous email. Fees: We will not be assessed any fees from WPG. Thus, I suggest that section 9 state this, or be removed. Margin: Section 14 should note that margin for our transactions through Buy Side Direct would be maintained at our prime broker. WPG would only request margin if our prime broker disaffirms a trade. Has the WPG attorney agreed to a time to discuss their agreement ? Thanks. Mike 713-853-9990 ---------------------- Forwarded by Mike Fowler/Corp/Enron on 09/12/2000 02:33 PM --------------------------- Mike Fowler 09/11/2000 02:41 PM To: PETEJ@andrews-kurth.com cc: Sara Shackleton/HOU/ECT@ECT Subject: Weiss, Peck & Greer Agreement My only suggestion regarding your comments on the WPG agreement would be not to change the 2nd line of 5a from "your Prime Broker" to "the exchange". Mike Minnich emailed you and me the following language to incorporate WPG's obligation as our nominal counterparty: WPG is responsible for the clearance and settlement of all affirmed trades executed on the BuySideDirect trading system. This appears reasonable to me (unless you or Sara feel that this could be interpretted as excluding trades for which the other counterparty fails). Rather than waiting until my issues regarding fees (#9) and margin (#14) are resolved, I suggest that you forward your comments to Mike Minnich (who will provide to WPG's attorneys) and note that we have requested an opportunity to discuss fees (#9) and margin (#14) with Mike Minnich and WPG. We suggest deleting #9 as our understanding is that we would not incur charges from WPG. Regarding #14, we would incorporate our Buy Side Direct trading activity into our margin account with our prime broker. Jason, I'll provide additional feedback after I discuss these issues with WPG. Please call me (713-853-9990) if you would like to discuss. Thanks. Mike
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