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Enron Mail |
Fascinating.
A few questions come to mind: 1) Has an auction transaction agreement been developed? 2) Harry, have we checked with Mark Perlis yet on any emission legal issues, such as can we offer an auction that competes arguable with the EPA Auction? 3) It appears as though this is going to be both a system that allows Enron to buy and sell with other participants, as well as allows others to deal with each other through the system. I would be my understanding that only physical delivery would occur in this market. Mark, do you think this (particularly the matching aspects of the auction) may be construed as a "multilateral execution facility" by the CFTC? I could not recall if that interpretation would be a problem for a physical delivery market; I know it would likely be for swaps. 4) Does Enron get any commission for playing running the system when others transaction without Enron being a principal? 5) I have no idea about the legality of offering up the Las Vegas trip. But, it seems as though we would need to review all relevant jurisdictions where the participants reside for an answer. Alan Harry M Collins 02/15/2000 12:22 PM To: Mark Taylor/HOU/ECT@ECT cc: Alan Aronowitz/HOU/ECT@ECT Subject: Auction FYI Attached is the preliminary outline of the proposed emissions auction, developed by Zal.. Please advise on the CFTC issues raised. Thanks, ---------------------- Forwarded by Harry M Collins/HOU/ECT on 02/15/2000 12:19 PM --------------------------- Zal Masani 02/14/2000 03:55 PM To: Harry M Collins/HOU/ECT@ECT cc: James B Fallon/HOU/ECT@ECT, Greg Woulfe/HOU/ECT@ECT, Leonard Tham/HOU/ECT@ECT, Doug Gilbert Smith/Corp/Enron@ENRON Subject: Auction Harry: Attatched is a document containg the basic structure of the auction as we envision it. Please keep in mind that it is a work in progress and will be modified as we develop a better idea of the auction. Below are certain questions we need clarification on. Structure: Do we have any CFTC exposure? By the nature of the auction structure, are we not implicitly matching? If yes then how does this affect the previous answer? Do we have exposure to the lottery commission if we offer a free gift during the auction? Contract: To limit our exposure due to failure of the system etc. what sort of Force Majure clause can we incorporate in the contract? To what extent are electronically signed contracts enforceable? Internal: Can other trading desks at Enron other than the emissions desk participate in this auction? What limitations can be placed on the emissions desk as far as information sharing and usage are concerned? both during and after the auction? Thank You Zal
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