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Enron Mail |
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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Shah, Kal </O=ENRON/OU=NA/CN=RECIPIENTS/CN=KSHAH< X-To: Zipper, Andy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Azipper< X-cc: X-bcc: X-Folder: \Zipper, Andy\Zipper, Andy\Inbox X-Origin: ZIPPER-A X-FileName: Zipper, Andy.pst FYI. Kal -----Original Message----- From: djcustomclips@djinteractive.com@ENRON [mailto:IMCEANOTES-djcustomclips+40djinteractive+2Ecom+40ENRON@ENRON.com] Sent: Friday, June 08, 2001 6:18 AM To: 156283@mailman.enron.com Subject: Enron: E-Trading 'Veteran' EnronOnline Calmly Faces NewcomersEntering Market and United ... E-Trading 'Veteran' EnronOnline Calmly Faces NewcomersEntering Market and United ICE-IPE. 06/07/2001 The Oil Daily © 2001 Energy Intelligence Group. All rights reserved. In the world of energy e-trade, Enron is one of the veteran players, having launched its EnronOnline commodity trading platform in November 1999 - and having completed its one-millionth transaction on the trading system late last month. Trading activity on EnronOnline is driven in large part by the Houston-based company's strength in the North American natural gas and power markets. But Enron wants the market to know the company is much more than a gas, power, and now bandwidth trader. Last week, Enron added crude oil and refined product options to EnronOnline, to go alongside the existing 52 products the company currently lists in the US oil market. Larry Gagliardi, director of US crude and products trading for Enron, says that new contracts are constantly being considered, based mostly on recommendations from users of its trading platform. In the US, Enron lists several types of primarily financial crude contracts on EnronOnline. These include swaps that replicate New York Mercantile Exchange futures contracts, jet differential swaps, and gasoline crack spreads. Enron also has a physical West Texas Intermediate contract that is traded around-the-clock. The company posts a bid price and offer price for all of those contracts, which means 104 US crude and product contracts are available on EnronOnline. In US markets, about 5 million-6 million barrels of firm oil quotes are posted daily on EnronOnline. The company electronically lists oil contracts through 2002, but the system can accommodate longer-term deals. Outside the US, Gagliardi says that EnronOnline has been most successful in European crude markets. "Asia has been a little harder, technologically," he says, noting that computer technology and internet connections are less reliable there. Enron's offerings in Europe include a swap for the differential between dated Brent quotes and the front-month Brent futures contract on London's International Petroleum Exchange (IPE), and swaps that mimic the IPE's Brent and gas oil futures contracts. A range of contracts are offered in Asia, including straightforward swaps for the Dubai and Tapis crude benchmarks, as well as for regional gas oil, high-sulfur fuel oil, and kerosene. When EnronOnline first launched, Gagliardi says, many brokers thought Enron was committing suicide by posting hundreds of commodity prices online. But the gamble has paid off. Enron's North American gas and power trading volumes, for example, have exploded to nearly twice the size of volumes handled by its nearest competitor, thanks to EnronOnline. Last year, Enron traders used the trading platform to complete more than 3,000 trades per person, up from 672 per trader in 1999. In recent months, Enron's trading activities have been overshadowed by other developments - most notably the oil company-backed IntercontinentalExchange's planned acquisition of the IPE. Intercontinental, or ICE, is also making a push in Asian oil markets, having just opened an office in Singapore. Far East derivatives offered on ICE include Singapore gas oil, fuel oil, kerosene, and naphtha oil product swaps. ICE also offers Dubai and Tapis crude oil swaps. Despite being faced with new competition, Enron's Gagliardi says the company's strategy hasn't changed. He bets that the liquidity and prices on EnronOnline will go unmatched by others. Enron's online trading system is different from most of its rivals. ICE, gas and power exchange TradeSpark, and others bring together buyers and sellers to trade anonymously online. On EnronOnline, Enron is a counterparty to every deal done on its site. Some traders have criticized Enron's trading platform, saying they prefer doing deals on exchanges with hundreds of participants - not on an online platform that they say is a sales channel for Enron. Gagliardi admits that the exchange model sounds appealing, but says that, so far, those exchanges have been unable to offer the same trading opportunities available on EnronOnline. "The reality of the situation is that no one wants to put out a number and leave it firm," he says of other online commodity exchanges. Jeff Gosmano. © Copyright 2001. The Oil Daily Co. For more infomation, call 800-999-2718 (in U.S.) or 202-662-0700 (outside U.S.). Folder Name: Enron Relevance Score on Scale of 100: 98 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved
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