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Enron Mail |
Thanks for the feedback. I think this is right in line with CRM's proposal
and will definitely meet our objective to control credit risks with higher risk counterparties. It is an excellent Phase 1 solution which we certainly can try to address more systematically in future developments. We have done some initial review of the current deal flow in Houston and London and don't expect this language to impact a high percentage of transactions. Based on our review of recently executed Enron transactions we expect about 80% of total transactions will not be impacted by this language. Most of our deal flow is with highly rated counterparties. However, as we build the Online Trading volume with more customers, we expect the majority of our customers will require this GTC language. Bill Justin Boyd 07/21/99 12:56 PM To: Mark - ECT Legal Taylor/HOU/ECT@ECT, Scott Sefton/LON/ECT@ECT, Louise Kitchen/LON/ECT@ECT, William S Bradford/HOU/ECT@ECT, David Weekes/LON/ECT@ECT, David Hardy/LON/ECT@ECT, andrew.wilkinson@cliffordchance.com, Edmund Cooper/LON/ECT@ECT cc: Subject: Proposed revised collateral clause for Online GTCs Following my earlier conversation with Mark Taylor I have revised the text, as attached. This limits the form of collateral to letters of credit. Comments/questions......... Thanks Justin
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