Killed Trades

It has come to light that there have been a number of EnronOnline
transactions which have been "undone" after the fact.

These are situations in which an EnronOnline trade has been completed, but we
have agreed verbally with the other party that the trade will be deemed not
have happened and we may have suppressed generation of a faxed confirmation.

It is of great importance that we do not do anything which makes an
EnronOnline trade appear as though it is not firm, or not reliable, or which
affects the audit process.

Therefore, EnronOnline transactions must not be killed.

Individual traders might elect to conduct an OTC transaction which has the
effect of reversing the impact of an EnronOnline transaction - this activity
is outside the scope of EnronOnline.

Please note that there has never been an instance in which there has been a
system error on EnronOnline which caused a trade to take place which was not
initiated by the customer. All instances to date have involved some kind of
operator error, or failure to use the results of a Transaction Search to
verify completed deals.

Dave