Message-ID: <10764726.1075854383704.JavaMail.evans@thyme> Date: Thu, 7 Dec 2000 02:13:00 -0800 (PST) From: darron.giron@enron.com To: anne.bike@enron.com Subject: requests for new curves, new books, porfolio changes Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Darron C Giron X-To: Anne Bike X-cc: X-bcc: X-Folder: \Darron_Giron_Jun2001\Notes Folders\Discussion threads X-Origin: Giron-D X-FileName: dgiron.nsf ---------------------- Forwarded by Darron C Giron/HOU/ECT on 12/07/2000 10:13 AM --------------------------- Susan D Trevino 12/06/2000 01:39 PM To: Darron C Giron/HOU/ECT@ECT cc: Shona Wilson/NA/Enron@Enron, Chris Abel/HOU/ECT@ECT Subject: requests for new curves, new books, porfolio changes Darron - Per Shona's request, I am forwarding the email with the hierarchy, book, and curve forms. Please contact me if you have any questions or comments. Thank you, Susan x3-1462 ---------------------- Forwarded by Susan D Trevino/HOU/ECT on 12/06/2000 01:28 PM --------------------------- From: Shona Wilson@ENRON on 11/22/2000 02:47 PM To: James New/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Andrew Cornfield/LON/ECT@ECT, David A Wall/Risk Mgmt/LON/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, Stacey W White/HOU/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT, Jenny Latham/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT, Martha Stevens/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, Michelle Bruce/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Clara Carrington/HOU/ECT@ECT, D Todd Hall/HOU/ECT@ECT, Brenda F Herod/HOU/ECT@ECT, Michael E Moscoso/HOU/ECT@ECT, Barry Pearce/Enron Communications@Enron Communications, Kristin Albrecht/Enron Communications@Enron Communications, Gary Stadler/Enron Communications@Enron Communications, Neil Hong/HOU/EES@EES, Warren Prihoda/HOU/EES@EES, Louis Colarusso/NYC/MGUSA@MGUSA, Christian LeBroc/Corp/Enron@ENRON, Rebecca Miller, Jan-Erland Bekeng/AP/Enron@Enron, Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David Port/Market Risk/Corp/Enron@ENRON, Vladimir Gorny/HOU/ECT@ECT, Frank Hayden/Corp/Enron@Enron, Bjorn Haglemann, Debbie R Brackett/HOU/ECT@ECT cc: Sally Beck/HOU/ECT@ECT, Brent A Price/HOU/ECT@ECT, Mike Jordan/LON/ECT@ECT, Chris Abel/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT, Burton McIntyre/HOU/ECT@ECT Subject: requests for new curves, new books, porfolio changes In the past few months, the procedures for setting up new curves and books have not been followed by everyone. The following memo documents the procedures to 1) set up a new curve, 2) set up a new book, and 3) change a portfolio hierarchy. Please note that risk management (for each commodity group), "risk management" is responsible for ensuring that information is flowing appropriately between the valuation systems and RisktRAC (Risk Analysis and Reporting can help, but do not have all of the ERMS information to be able to ensure the completeness of RisktRAC). I have attached the request form for each of these changes at the bottom of this memo. Please ensure that everyone in your group obtains a copy. The procedure to set up a new curve is as follows: Trader starts trading at a new location or a new commodity and needs a new curve set up Trader communicates this to risk management Risk management constructs new curve in ERMS (with the help of the IT department) Risk management completes a curve set up request form to set up curve in RisktRAC Curve form is forwarded to Risk Analysis and Reporting Risk Analysis and Reporting sets up curve in RisktRAC A system generated message is sent to people on the "curve list" indicating a change in the RisktRAC curves has been made If the curve is not set up in RisktRAC the positions are not captured in the VAR or engine, thereby making VAR inaccurate. As a side note, Risk Analysis and Reporting has implemented a new process in which on a weekly basis new curves set up in ERMS are reviewed to ensure that these have been set up in RisktRAC. We did this for the first time today and noted numerous curves in ERMS that are not in RisktRAC - which we are working with you to resolve. The procedure to set up a new book in RisktRAC is as follows: Trader/risk management determines new book is needed New book request form (for RisktRAC) is completed by risk management New book request form is forwarded to Risk Analysis and Reporting Risk Analysis and Reporting sets up book in RisktRAC Risk Analysis and Reporting forwards request to ERMS administrator and global counterparty group to request that book is set up in valuation and counterparty systems Once all groups have completed their individual set ups, a final e-mail is sent to personnel on the "books list" and the book administrator in the risk management department who requested the book It is important that there is a one to one link between the ERMS and RisktRAC books, or not all positions will be captured in RisktRAC (two commodities per ERMS book does not flow properly into RisktRAC). The above two processes have formally existed for a number of months. Additionally, we are formalizing the procedure for changing portfolio hierarchies. The procedure now is: Risk management is responsible for requesting all portfolio hierarchy changes. Previously, changes could be made through a request by Risk Analysis and Reporting or RAC. These two groups are no longer allowed to submit change requests. All requests must come through risk management. Risk management completes a request, including the reason for the requested change in structure Risk management forwards the request to Risk Analysis and Reporting Risk Analysis and Reporting makes the change and notifies risk management that the change has been made. If you have any questions, comments or concerns, please call: me X39123, Chris Abel X33012, Burton McIntyre X57197, or Susan Trevino X31462. Thanks, Shona