Subject: RE: Nymex Status
From: [email-masked]
To: [email-masked]
Date: Wed, 7 Nov 2001 06:29:49 -0800 (PST)

sure

-----Original Message-----
From: Shults, Bob 
Sent: Wednesday, November 07, 2001 6:33 AM
To: Arnold, John
Subject: RE: Nymex Status

Yes.  Want me to come to your desk?

-----Original Message-----
From: Arnold, John 
Sent: Tuesday, November 06, 2001 9:19 PM
To: Shults, Bob
Subject: RE: Nymex Status

are you free around 430 wed to discuss?

-----Original Message----- 
From: Shults, Bob 
Sent: Tue 11/6/2001 3:21 PM 
To: Arnold, John 
Cc: 
Subject: Nymex Status

John, 

I met with Bo last Thurs and continued the discussion today with Bo, David Keller (Nymex CTO), David Salomon (Nymex), Brad Richter and Jay Webb.  Nymex indicated that they would like to move ahead very quickly on getting a price posting arrangement with them on Access where they will be showing prices all day including the OTC products.  Once this is complete they would also like to contemplate an arrangement on a Phase 2 technology sale with them.  They are currently scoping our the Phase II requirements.

Nymex does not have the resources to build the API (interface with EnronOnline) and would like us to do the development.  This type of arrangement requires the desk to make some decisions:

Are we willing to post numbers on Access electronically and have the transaction occur on Access?  This will give us the risk of being double hit. 
Are we willing to dedicate technology resources to this effort (and away from other EnronOnline priorities) and will the desk get enough benefits to justify the opportunity costs? 
What would it take for you to post numbers in this fashion (fees, preferential fills, etc).  You have the original specialist proposal we sent to them.

We indicated to Bo that we would get an answer on this and call in the next couple of days.  If we can answer these questions, Jay will have someone look at the Access code and determine the cost to us (development time).

We will also be meeting with Nymex next Wed to talk about Phase II.  We think that we can structure a transaction that would include an Access Price Posting in the short term, Specialist role and an obligation to look at our Phase II proposal.  If we do not get a firm commitment on Phase II within a specified period we can review our specialist role and ask them to pay for the API we built to access.

Please call me to discuss at 713 853-0397.  

Bob Shults 
EnronOnline LLC 
Houston, Texas 77002-7361 
713 853-0397 
713 825-6372 cell 
713 646-2126 
[email-masked]