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Enron Mail |
Dear Mark, Peter and David,
Justin and I have now carried out the legal due diligence necessary to trade Bullion on EnronOnline with counterparties based in Sweden, Switzerland and South Africa. We intend to launch two products; a spot forward contract (based on a price fixed by our traders that is linked to the current traded price on the Reuters page) in both gold and silver. These trades are all cleared, by paper transfer, through the London Bullion Clearing System, and for this purpose each contracting party is required to appoint a Clearing member. There are a total of 7 Clearing members, all of which are banks or similar financial institutions, and all of which are regulated by the Bank of England. The Enron counterparty to each trade will be Enron Capital & Trade Resources International Corp. (as arranged by Enron Europe Finance & Trading Limited, the SFA regulated entity). Settlement will occur through the crediting or debiting of an unallocated gold account and the corresponding debiting or crediting of a cash account. Please would you advise whether trading with counterparties from your jurisdiction(s) in such products would give rise to any specific legal issues. The jurisdictions which I believe would fall under your remit are as follows: Mark: USA Peru Mexico Peter: Canada David: Australia If you have any questions or concerns please do not hesitate to contact either Justin or myself. Kind Regards, Ian Brungs
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