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Enron Mail |
Mark,
I have discussed your note with Justin and Paul and wanted to give you some feedback. Masters combining Physical and Financial transactions The view was that whilst we would obviously take advantage of such documentation if it were developed, the current need for such a product at Enron Europe is limited and so we probably would not want to commit resource to leading an effort to develop it. Differences in delivery obligations and physical supply systems make such documentation extremely difficult to develop, and we have in the past, on the few occasions when the need has arisen, used our own physical contracts and bridged those into master agreements for financial transactions. Merging the numerous financial Masters now available in the market. The paper attached to your note seems more focussed on this issue. I can understand ISDA from a market positioning perspective not wanting to ignore the competition and possibly wanting to join forces with them. Again, however, the operational benefits such a merger would be likely to bring to Enron Europe would probably be marginal: ISDA is gaining more and more market acceptability in Europe and changes may serve, initially at least, to slow the rate of acceptance of ISDA as standard documentation, rather than accelerate it. That was about it. I'd be happy to discuss this further next week in Houston if you think that would be useful. Mark From: Mark E Haedicke on 19/09/2000 11:43 CDT To: Mark Taylor/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT, Paul Simons/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT cc: Subject: Single Master Agreement Please see below from ISDA. Do we ever want to go to using the ISDA for physical and financial deals? Should this be a long range plan? Mark ----- Forwarded by Mark E Haedicke/HOU/ECT on 09/19/2000 11:38 AM ----- Robert Pickel <RPICKEL@isda.org< 09/19/2000 08:06 AM To: ISDA BOARD <BOARD@isda.org< cc: Angela Papesch <apapesch@isda-eur.org<, Kimberly Summe <KSumme@isda.org<, Nick Collier <ncollier@isda-eur.org<, Ruth Ainslie <RAinslie@isda.org<, Shigeki Kawano <SKawano@isda.org< Subject: Single Master Agreement As we discussed at the Board meeting last week, the impetus for a single master agreement will need to come from several fronts, but especially from within each of your firms. The various trade associations will be most responsive to the idea if they are hearing strong support for a single agreement from decision-making levels within member firms. We will separately continue or commence a dialogue with the trade associations that sponsor various agreements or are active in the areas of the financial products that would be covered by such an agreement. The trade associations we have identified as likely to be important to this project are the following: Securities Industry Association (US) The Bond Market Association (US) International Securities Market Association (principally Europe) European Banking Federation (Europe) The Foreign Exchange Committee (NY, London, Tokyo) Emerging Markets Traders Association The following associations may also be helpful to the process: Australian Financial Markets Association British Bankers Association Japan Securities Dealers Association Canadian Bankers Association International Primary Markets Association (London-based) ACI (The Foreign Exchange Association)(Paris-based)_ If your firm is active in any of these organizations, we encourage you to discuss as soon as possible with your representative within that organization the need to support the development of a single agreement for financial products and urge them to express their support to the associations. If it would be useful to share with them the thoughts in my memorandum to the board, please feel free to do so. I have attached an edited version which deletes the last couple of sections on my discussions with the BMA, the Russo-Carlin group, Ernie Patrikis's letter and possible approaches for ISDA. I will try to contact each of you over the course of the next week to get your feedback. In the meantime, if you have any questions, please do not hesitate to email me or call me (212-332-2554) Bob - SAFT.doc
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