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Enron Mail |
Paul,
I just wanted to confirm that I understood our conversation. We are limited to 150 MW short or long until some future date. I understand that limit will be expanded as we gain more experience. As an aside, I wanted to explain a little better why I felt, if not comfortable, at least not painfully uncomfortable carrying what would normally be considered a fairly large position. 1. Off Peak is only 7 hours of exposure, meaning it is less than 1/2 the time length exposure. 2. Off Peak PJM is historically much less volitile, than the peak period. 3. My long position was at a fairly low price ($15) 4. My main motivation was to get some transaction volume to get more players involved in the market. Most of the potential counterparties I called were not used to having a market. I had to explain how to use EOL limit orders to a number night shift counterparties. I intentionally wanted to get them to make their first trade. I was overzealous in my approach. I intend to continue trying to drive volume, while taking reasonable positions, until the various players are more comfortable in the market, but will ensure I keep my exposure inside the 150 MW limit. Thanks, David -----Original Message----- From: Thomas, Paul D. Sent: Thursday, November 08, 2001 10:03 AM To: Ingram, David; Mathews, Reagan; Terp, Brian Subject: Trading Limits While trading on EOL or moving physical power you should not have a position larger than 100 MW. If you find yourself at these positions while trading EOL you should then widen your market so that you do not take on a larger position. If you have any questions please let me know. I would recommend that you put EOL product properties on manage stack... then you will be able to widen your market easily when your position reaches the 100 MW limit. Paul
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