|
|
Enron Mail |
From a credit standpoint, potential risk of this 25,000 bbls/mo, May'01,
financial swap is very small. But I recognize ECP issues since no support and no information has ever been available. Can we include a representation that, upon execution, would establish eligibility. I will manage credit under volume/tenor limits and implied support of a AA parent. If acceptable, please send language to Confirmations for use in this (v24545) and all future trades. thanks brant -----Original Message----- From: Shackleton, Sara Sent: Tuesday, April 10, 2001 10:51 AM To: Reves, Brant Subject: Re: ECTRI financial requirements Yes, "eligible contract participant" ("ECP") is an issue. Both ENA and ECTRI are Delaware corporations and are therefore subject to the jurisdiction of the Commodity Futures Trading Commission (the U.S. regulatory agency with oversight for derivatives). As a practical matter, I understand that ECTRI does have many executed ISDA agreements. I do not know the volume of "omnibus" trades. However, the ECTRI omnibus should have ECP representations in the annex. Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com Brant Reves/ENRON@enronXgate 04/10/2001 10:29 AM To: Sara Shackleton/HOU/ECT@ECT, Brent Hendry/NA/Enron@Enron cc: Subject: ECTRI financial requirements A financial trade v24545 was done with Total International Limited. This entity is subsidiary of a very good credit customer, TotalElf (S&P rated AA-). Risk is acceptable, small volumes, short tenor, but from a legal standpoint, I do not think this entity is an "Eligible Contract Party" as we have no guaranty support or financial statements to support trading. I noticed that quite a bit of financial trades are currently booked in London with this customer. Does Enron Capital & Trade Resources International Corp. (London financial) have the same ECP requirements as ENA. If so, I would like to know how they have established eligibility. thanks brant
|