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Enron Mail |
Number 2
---------------------- Forwarded by David G Mally/HOU/ECT on 05/26/99 05:51= =20 PM --------------------------- Louise Kitchen 05/19/99 12:51 PM To: Dave Mally/HOU/ECT, Kevin Sweeney/HOU/ECT cc: =20 Subject: Re: OnLine Upate ---------------------- Forwarded by Louise Kitchen/LON/ECT on 05/19/99 10:2= 4=20 AM --------------------------- Louise Kitchen 05/13/99 11:24 PM To: Louise Kitchen/LON/ECT@ECT cc: =20 Subject: Re: OnLine Upate =20 Louise Kitchen 05/13/99 11:19 PM To: John Sherriff/LON/ECT@ECT, Greg Whalley/HOU/ECT@ECT, Philippe A=20 Bibi/HOU/ECT@ECT cc: =20 Subject: OnLine Upate Executive Summary The work on the scoping of the project has been completed and a consultancy= =20 firm should be chosen on Monday, the plan is to have 2 companies to negotia= te=20 full terms with. A timetable should be available mid next week for the=20 system requirements. The terms of the contract to be concentrated on are= =20 the delivery premiums and penalties. The legal and regulatory side is fully underway on both sides of the=20 atlantic. =20 Work on the business process side of the site is under way, this includes t= he=20 integration of internet trading within the company and the management of th= e=20 side (including the administration, product management etc ) has commenced= =20 and an intial group has been put together to work on this, with the aim of= =20 creating a base plan which will be rolled out in Europe and used as a base = to=20 set up activities in the US. Initial schedule for next meeting - 2nd or 3rd June. 1. Systems & outsourcing=20 Several firms have been interviewed for the outsourcing of the project. Th= e=20 shortlist includes several firms, at the time of writing those at the top= =20 include Agency, I-cube and US Web. A summary of the outsourcing companies = is=20 attached. Bearing in mind no further companies are introduced a decision= =20 may be possible immediately upon the quotation from Agency. The contract with the company will be negotiated immediately emphasizing=20 premiums for delivery and penalties for late delivery. The powerpoint presentation used in the consultancy hiring process is=20 attached for information. 2. Systems Documentation The initial specifications have been written to outline the scope of the=20 project with a view to hiring the appropriate company and ensuring the=20 internal processes are commenced. 3. Legal Review=20 Two legal firms have now been instructed with regard to the project. Europe - Clifford Chance are acting as Project Manager for Europe.=20 Clifford Chance have been instructed on the following areas: (i) Advice on overall website structure (text, context, content etc)=20 (ii) preparation of the initial customer documentation / registration=20 documentation (iii) specific internet trading advice for all jurisdictions (iv) co-ordinating advice of those firms utilised across all juridictions b= y=20 Enron on the physical and financial trading (to include Enron's financial= =20 regulatory advisors Slaughter & May) (v) co-ordinate with US legal counsel on cross jurisdictional issues (such= =20 as use of US companies as Enron counterparty in the European markets). Initial meetings held with Enron commercial, legal and support teams. US - Sullivan & Cromwell have been instructed to advise for the US market= =20 primarily because of their CFTC experience. Initial briefing meeting on th= e=20 project was held on 7th May 1999 and a follow up meeting on their initial= =20 findings of the structure is to be held on the 17th May 1999. Sullivan &= =20 Cromwell have been instructed to review the proposed structure of the site= =20 and outline all the legal and regulatory issues surrounding the transaction= al=20 nature of the site. Sullivan & Cromwell shall be reviewing the initial enabling documentation = as=20 produced by Clifford Chance. 4. Business Process The first draft of the requirements for the business process requirements f= or=20 the project has been completed. This document will form the basis of the= =20 programme to ensure integration of online trading within the organisation. = =20 David Port will be leading this effort and Dave Malley is a possibility for= =20 the US - any thoughts? The key areas that require defining of Business Processes are: 1. Customer registration =20 2. Authorisation of new traders within Enron=20 3. Setting up new products and control over existing products 4. Transaction execution online 5. Online transaction validation - the main business processes include=20 credit and market or position limit check. 6. Interface between online system and Gas, Power and Global Liquids books,= =20 i.e. automatic deal data transfer from Enron=20 7. Online Database into appropriate book after deal was validated online. 8. Transaction confirmation and processing by middle office/back=20 office/documentation departments. This should cover any deviations in the= =20 business processes for trades done online versus OTC trades. 9. Process of disputes handling. This process will cover disputes on whethe= r=20 the deal is done or not as well as disagreements over particular commercial= =20 terms of a done deal. 10. Documentation and Contracts 11. Master Agreements and GTCs have to be put in place for all anticipated= =20 types of transactions, commodities and countries. 12. All documents need to be translated into appropriate foreign languages. 13. Viewing by users of their own account status =01) the system should all= ow to=20 reconcile data in the Enron Online database against information in the book= s. 14. Online news publishing (System news,Trading groups new, General energy= =20 related news, Online trading help) 5. Project Staffing Commercial =20 Paul Goddard - interface with IT team, Paul will be working closely with th= e=20 IT team on the structure and content of the page. Elena Kapralova - Elena will be responsible for the start up of the Busines= s=20 Process part of the project and will be the co-ordinator on the european si= de=20 for the actual form and content of the product lines. Arfan Aziz - documentation co-ordination with responsbility for creating a= =20 database of counterparties for the production of registration documents for= =20 Europe. Supporting the project - Europe=20 Business Process David Port Tax Janine Juggins Credit/Risk Control Bryan Seyfried Legal Justin Boyd Potential support from US includes Dave Mally IT Team Jay Webb - Project Manager Tiluk Mandadi Bob Campbell (transferring to Houston from UK for 3 months) Neil Donkin (subject to final confirmation) Pat Gogerty and Chris Dodds for initial period of 3 weeks (from UK) plus 2 other US employees.=20 =20 6. Meetings next week Louise (New York on Monday, Tuesday onwards in Houston) Sullivan & Cromwell - Mark Taylor=20 Mark Palmer (introductory meeting)=20 Janine Juggins - Tax=20 Dave Mally - Support Ted Murphy - Risk Control Greg on staffing and Australia Paul Goddard will be spending the week with the IT team in Houston to assis= t=20 particularly on the contracting process. Business Process meetings to continue in London with mock up completed by I= T=20 mid week. Louise
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