Message-ID: <16667057.1075859177941.JavaMail.evans@thyme> Date: Fri, 26 Jan 2001 17:14:00 -0800 (PST) From: jens.gobel@enron.com To: harry.arora@enron.com Subject: ENRON METALS WEEKLY REVIEW Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Jens Gobel X-To: Harry Arora X-cc: X-bcc: X-Folder: \Harry_Arora_Jan2002\Arora, Harry\SavedMail X-Origin: Arora-H X-FileName: harora (Non-Privileged).pst Remember our discussion yesterday? Jens ---------------------- Forwarded by Jens Gobel/EU/Enron on 26/01/2001 19:18= --------------------------- =20 =09Enron North America Corp. From: Alex Heath @ ECT = 26/01/2001 12:30=09 =09=09 To:=09Enron Metal & Commodity - UK traders, Enron Metal &Commodity - Global= Traders, Enron Metals Global a/es, Enron Metals lme Dealers, Enron Metals = London A/E's, Enron Metals ORIGINATION TEAM, ENRON METALS SCRAP GROUP, ENRO= N ONLINE MKTG cc:=09=20 Subject:=09ENRON METALS WEEKLY REVIEW =09=09=09=09=09=09Enron Metals Weekly Review Good evening ...one and all . It hardly seems possible that we are another= week on already such has been the pace of activity here . The ebb and fl= ow in the Ali market both in the spreads and outright price have kept our= valiant dealers on their toes as seemingly the whole market vies to av= ail itself of our pricing and liquidity services on-line ! . Daily volum= es have continued to grow with over 800 separate transactions being seen= today! . In fact volumes have risen by approximately 56% since December = from a daily average of 357 to a daily average of 557 for January .At th= e same time the regular Non-EOL transaction count has decreased from about = 1800 trades a day to 1586 trades since December. Your efforts at gettin= g the registered customers who had not completed an on line trade are be= ginning to pay dividends finally - but the migration remains painfully sl= ow . Keep plugging away=20 =09 =09=09 =09=09=09=09=09 =20 =20 =09The graph above illustrates the growth of our average daily online tra= nsaction volumes in relation to our regular transaction volume on a monthl= y basis from July of 99 to date . This week's daily transaction volume is another record and but for the= blip on Monday which put down to the Mother's day in Africa holiday wo= uld have been sensational . =20 =09 =09=09 =09=09=09 We have asked for your response to several queries over the past three week= s and have received little or no reaction. Consequently we shall ask agai= n. =20 Currently at the top of the list: if each of you could create a list of M= etals Conferences you believe would be beneficial for Enron metals to atten= d, speak at and/ or have metals or EnronOnline presence, it would be greatl= y appreciated. This is a multi faceted sales and marketing tool for your be= nefit . Aside from the overall goal of creating a unified metals marketin= g plan, we are also trying to prepare a budget to assure that proper attent= ion and funds are given Enron metals Global exposure in 2001 . Therefore, = if we do not receive your recommendations well in advance we will not be = in a position to sponsor them . We have created a conference listing which = will be circulated next week . Please add to it if we have missed any off = . and mark onto our list those you think should have our attention .=20 For those of you that missed it last week, we have attached another copy of= the Account Application Form. The completion of this form for BOTH tradit= ional and online customers will speed your client's access to trading with = Enron Metals. =20 The lack of contributions for this review from any of you is rather disa= ppointing . We will continue to offer you items that you may find of use .= However the purpose of this review is also to incorporate content from = around the network of our global field offices. I know you are all ver= y busy making money for the cause . This medium is a useful platform to = get your message over . =20 For those of you not on the circulation lists see the attached reports = =20 =09=09=09=09=09=09 =09The Metals Crammer report =09=09 =09=09=09=09=09=09 =09The daily Options report=20 =09Whilst not exactly a feature we thought it might be a useful exercise = in client relationship damage limitation to explain what happens when = a customer finds he cannot trade on line .This has begun to occur more reg= ularly as our volumes and activity increase. =09Customers are allocated a credit line for EOL within the system based u= pon their agreements. This limit is set daily as a default against t= he clients name . basis the AS400 's net valuation of the client's positio= n . The amount of available variation credit on the client's account o= n EOL is set as his limit f or the next days trading . If the client shou= ld trigger this limit during the next day's trading the system will rejec= t the trade and lock out the customer . Not very user friendly as the cus= tomer is not told why . London credit (Hamish's team) get a red flag , as = of course do the traders running the stack managers as they see the trade r= ejected. The problem now becomes one of frustration for the customer as th= e system will not allow him to liquidate his position either in part or who= le .He will have to pick the phone to do this . Secondly the resetting of a= ny limit in the system takes 48hrs . This is being worked on but we mus= t remember that Metals are the only futures products on the system and the = other OTC products on the system are dealt with differently . It also ser= ves to highlight that clients with small credit lines in the 1 to 200,000 = dollar range are not really suited to use EOL . Security such as g/tees an= d cash are taken into account but can be missed ,but forward profits are a= s it is net availability that is used on the AS400. This will all improv= e with the introduction of a new bridge between the Enron risk system an= d the AS400 in the very near future . =20 =09 =09In the meantime it will be up to you to keep the peace and explain to = your clients . Get them to keep within their limits . Call them quickly wh= en they get locked out. =20 Remember, we are here to help your efforts and help create positive communi= cation lines between our offices world-wide. So, send us your thoughts, qu= estions, concerns, local area market news etc. We will look forward to he= aring from you. =20 Cheers,=20 Alex and Molly Alex Heath=09=09=09=09=09Molly Hellerman alex.heath@enron.com=09=09=09=09molly.hellerman@enron.com +44 207 783 2071=09=09=09=09+44 207 783 5198