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Enron Mail |
Mark
=20 I need your help clarifying a few points. My thoughts are as follows: ISDA 1 ISDAs should not number more than say 3 in the next year. There just are= =20 not that many big players down here and the product is still very new to th= e=20 market. 2 If yall believe Andrea needs more training I think this is great, but I= =20 have to get through 4th quarter 1st. Jan Feb is slow here and she can come = up=20 then. Probably not a bad idea to commercially cross train Fabian Valle as well to= =20 set up a back up. 3 It does not make sense to fly people all around the world to negotiate=20 ISDAs until there is a market that will support that volume of business. 4 I would propose that Andrea handle the local customer legal relationship= =20 and closely coordinate with your Houston team to introduce, discuss and=20 finally if applicable negotiate these limited first documents if any.=20 5 It could be understood that a Houston attorney would be present in all=20 discussions via conference call 6 Andrea as she is ramping up in her training would act as the local point = of=20 contact and communicator without conflicting with US law interpretation =20 Physical Swap Agreement =20 1 I am under the impression we had agreed to work with the physical swap=20 agreement, short form, ominbus agreement you provided the other day. 2 This would be for stand alone 1yr or less transactions that arise as we g= o=20 forward. 3 This is a good bridge to get people to start doing simple structures to= =20 understand the need to go to the next level of documentation 4 We have two transactional needs The random swap that is being discussed and needs a document to demonstrat= e=20 the actual commercial agreement. Maybe 5 per year. If we get the EOL financial product sorted out with regards to local or NA= =20 as the vehicle then for short term simple swaps 5 Either we are looking for a bridge to get us to the next level and ensure= =20 that the documentation process is not hindering market growth =20 Let me know if we can work with your group under this understanding to=20 facilitate the first deals in this market. We should constantly review the= =20 markets growth and adjust our documentation as it is needed as we go forwa= rd=20 both in terms of EOL and the financial document. Regards MFG Andrea Calo 10/24/2000 07:04 PM To: Michael Guerriero/SA/Enron@Enron cc: =20 Subject: ISDA - follow up Mike, FYI. I spoke with Brent this morning to let him know that you had asked me = to=20 accompany the commercial team in the preliminary discussions of how the ISD= A=20 form works, as well as to request reading material on the subject. He=20 explained that he and Mark were both of the opinion that since the ISDA for= m=20 is a document designed to work under US law, they were not comfortable with= =20 me explaining the document to counterparties without further training on th= e=20 document itself, and gaining experience on Enron=01,s policy as it relates = to=20 certain modifications to the document. He suggested I should spend at leas= t=20 two weeks in Houston to train with the group and the document in order to b= e=20 minimally prepared to instruct counterparties on how the document works. A= s=20 far as the "omnibus" form is concerned, and contrary to what we thought,=20 Mark's intent during our last visit was apparently to approve use of a=20 document of the sort only for execution by a special purpose Argentine=20 derivative company and not by ENA, which would continue to execute ISDA=20 forms. If the idea is to have a short form cross-border master agreement= =20 between ENA and Argentine counterparties then ENA legal would have to draft= a=20 document which would take some time to create. Lets discuss when you get a= =20 chance. Thanks. Andrea
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