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Enron Mail |
Anna,
I have reviewed the existing ECTRIC, Norweigan Branch HDD Swap GTC's. In contrast to the Financial GTC's which when read with the ETA are drafted on the basis that the GTC's only apply if an ISDA has not been executed, the HDD Swap GTC's have been drafted to work in unison with the ISDA framework. The HDD Swap GTC together with the specific documentation for each transaction constitutes a Confirmation under the ISDA Master Agreement. As such every counterparty should be required to accept the GTC's regardless of whether or not they have an ISDA Master Agreement in place. If an ISDA Master has been executed this will govern the HDD Swaps as modified by the terms of the relevant GTC's. If no ISDA Master is in place the GTC's will govern. I have made some drafting changes in respect of the existing HDD Swap GTC's which I have forwarded to Mark and Justin for comments. I will revert to you in due course with respect to any changes. Best regards, Denis Anna Gardiner 04/09/2000 09:48 To: Justin Boyd/LON/ECT@ECT, Denis O'Connell/LON/ECT@ECT cc: Enron London - EOL Product Control Group/LON/ECT@ECT, Frank L Davis/HOU/ECT@ECT Subject: GTC's for weather Justin/Denis When we recently launched Swedish, UK, Norwegian and French weather HDD swaps on EOL, there were three counterparties that were indicated as having ECTRIC masters in place that would apply when trading weather HDD swaps. Dave Forster's email below indicates that these masters should not be used for weather transactions and that we should use either the GTC or a weather-specific Master Agreement. The counterparties that legal initially indicated as having masters in place for weather transactions are as follows: Morgan Stanley Capital Group Inc - ECTRIC master in place no. 96023172 J.Aron & Company - ECTRIC master in place no. 96033708 The Chase Manhatten Bank - ECTRIC master in place no. 96040163 Please could you confirm (as Dave states below) that these master agreements should not apply for trading weather HDD swaps and that the above mentioned counterparties should really have a weather-specific master in place or be asked to accept the applicable GTCs online. For your information I have attached the original counterparty profile list reviewed by Edmund. The master agreement numbers that are crossed out are those masters that were applicable when the legal entity for HDD Swaps was ENA. The legal entity is now ECTRIC, Norwegian Branch. Please could you advise me as soon as possible. Thanks Anna ---------------------- Forwarded by Anna Gardiner/LON/ECT on 04/09/2000 09:23 --------------------------- Amita Gosalia 04/09/2000 08:19 To: Enron London - EOL Product Control Group/LON/ECT@ECT cc: Subject: GTC's for weather Guys Can you please check for our weather products. A ---------------------- Forwarded by Amita Gosalia/LON/ECT on 04/09/2000 08:21 --------------------------- From: David Forster@ENRON on 01/09/2000 14:21 CDT To: Frank L Davis/HOU/ECT@ECT cc: Mark Dilworth/LON/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Amita Gosalia/LON/ECT@ECT Subject: GTC's for weather It has come to my attention that when we have a Financial Master Agreement in place, we have identified that a Master exists for the Weather Products. This is not correct as the ISDA Masters do not properly cover weather. For Weather transactions, we need to use either the GTC or a weather-specific Master Agreement. Frank: Could you please arrange to identify which companies have already transacted on weather and have done so ostensibly under an ISDA? Could you please also coordinate with Mark as necessary to update Customer Profiles so that customers with ISDA's will need to accept GTC's? If we have customers who have ostensibly transacted already under their ISDA's, let's identify who they are and then decide on a course of action for their profiles. Thanks, Dave
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