Message-ID: <19977370.1075857579440.JavaMail.evans@thyme> Date: Tue, 11 Apr 2000 10:16:00 -0700 (PDT) From: john.arnold@enron.com To: dutch.quigley@enron.com Subject: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: John Arnold X-To: Dutch Quigley X-cc: X-bcc: X-Folder: \John_Arnold_Dec2000\Notes Folders\All documents X-Origin: Arnold-J X-FileName: Jarnold.nsf Dutch: The increase in position and subsequent position limit violation was due to two factors. First, a long position was moved into the long-term exotics book due to the nature of the position. I am currently using the ltx to hold longer-term strategic positions. The large increase in position is a reflection of my view of the market. Second, a large customer transaction originated by Fred Lagrasta's group was transacted at the end of the day Monday and was not able to be hedged until this morning. Hence a large position increase occurred for yesterday's position and a corresponding decrease occurred today. John