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Enron Mail |
Cc: ect.trading@enron.com, beth.apollo@enron.com, trena.mcfarland@enron.com,
shari.stack@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: ect.trading@enron.com, beth.apollo@enron.com, trena.mcfarland@enron.com, shari.stack@enron.com X-From: Paul Simons X-To: Gail Hill, Brigitta Millard, Paul Wallace, Jefferson D Sorenson, Dale Neuner X-cc: ECT London European Trading, Beth Apollo, Trena McFarland, Shari Stack X-bcc: X-Folder: \Mark_Taylor _Dec_2000\Notes Folders\Uk trading X-Origin: Taylor-M X-FileName: mtaylor.nsf This note summarizes the SFA contents requirements for confirmations governing financial transactions. These transactions will include financially-settled global products, power and gas transactions, as well as FX , interest rate and weather transactions and (looking forward) financial pulp, paper and coal transactions. Physically settled deal confirmations are not subject to these requirements. I believe that our confirmation templates meet almost all of these requirements, but would ask that you work through the list below and satisfy yourselves that each element is included. Any changes to our forms of confirmation should be made with immediate effect. I propose that Gail, Bigitta, Paul, Beth and I meet shortly to discuss this. I am sending this note to Jeff and Dale in Houston, because the following requirements apply to all transactions entered into through EEFT(our UK arranger) even if those transactions are confirmed out of Houston. This means, for example, that the confirms prepared in Houston for FX or interest rate deals entered into in London by Trena McFarland are subject to these contents requirements. (The only exception to this is where the counterparty to the trade is a regulated entity, which would need to be checked by the London Legal Department on a case by case basis.) THE SFA REQUIREMENTS In order to comply with SFA rules (Rule 5-34), the following information should be included in each financial trade confirmation sent by EEFT to its counterparties: 1. A statement that "Enron Europe Finance & Trading Limited is regulated by the Securities and Futures Authority Limited". 2. Customer's name and (if applicable) account number. 3. Date of transaction. 4. A statement that "The time the transaction was executed is available on request" OR in relation to notes sent confirming the exercise of an option, a statement that "The time the option was exercised is available on request". 5. The type of derivative, e.g. gas/propane future, option, swaption or contract for difference. 6. Size of transaction. 7. Sale or purchase. 8. Unit price/Premium 9. Re. options: Strike price . 10. Maturity/expiry/delivery date OR in relation to options, the last exercise date. 11. A statement that "Enron Europe Finance & Trading Limited may receive remuneration from other persons in relation to this transaction. This information is available on request". 12. Exchange rate of any forex purchase. Note: Where a futures transaction closes out an open position, it is necessary to send the counterparty a statement of profit or loss resulting from closing out the position. Is this sent separately to the counterpary by our Accounts Department, rather than by Documentation? Many thanks for your co-operation. Paul
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