Message-ID: <20120779.1075844448951.JavaMail.evans@thyme> Date: Fri, 14 Apr 2000 05:28:00 -0700 (PDT) From: david.minns@enron.com To: raymond.yeow@enron.com Subject: Re: Global Confirm for Weather Cc: paul.quilkey@enron.com, stephen.lowe@enron.com, heidi.mason@enron.com, nick.mooney@enron.com, jerven.zhang@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: paul.quilkey@enron.com, stephen.lowe@enron.com, heidi.mason@enron.com, nick.mooney@enron.com, jerven.zhang@enron.com X-From: David Minns X-To: Raymond Yeow X-cc: Sara Shackleton@ECT, Paul Quilkey, Stephen J Lowe, Heidi Mason, Nick Mooney, Jerven Zhang X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Australia X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Due to the timing differences I had a crack at including these changes. Attached is an amended confirmation. The only change I was not sure about was tightening up the temperature definition. Do you mean moving to greater precision in rounding? No problem but we are following the UK approach. I would be most interested in any comments Paul would have. By way of background I consulted the London office on their rounding conventions for Celsuis. Raymond Yeow 04/14/2000 07:58 AM To: David Minns/ENRON_DEVELOPMENT cc: Sara Shackleton@ECT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen J Lowe/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nick Mooney/LON/ECT@ECT, Jerven Zhang/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Global Confirm for Weather Dear David, Thanks to you for your prompt attention and to Jerven for finding Christian's corrected document. Nick has commenced the process to put a global confirm which can be used woeldwide by Enron for weather derivatives, He has contacted Paul Simons , ex Clifford Chance , ISDA board member, and SFC compliance officer to kick off. In the meantime, we will use the document below { CDD 13-04-00.doc } but changes will still be further required - sorry :o( A. Payment Date(s) want to say that final payment from any adjustment is no later than 20 biz days after end of 95 days. Avoids continual payments if temp is revised frequently in the 95 days. B. in Floating amount for time, and tighter defn of temperature and base temp is 18 C. Data Sources I want to make the Final payment dependent not on website ( because website is not updated when a correction occurs) but rather the final Data Source is "daily temp and climate archive" of the National climate centre ( NCC) of BoM Do you want me to type up changes for you to peruse or shall i chase up directly with Sara ? Who OKs the wording of the confirm. ? Thx, Raymond 13 April To: Raymond Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: FYI---Re: Australian CDD Confirmation ---------------------- Forwarded by Nick Mooney/LON/ECT on 14/04/2000 03:33 --------------------------- Enron Europe From: Nick Mooney 13/04/2000 14:55 To: Paul Simons/LON/ECT@ECT cc: Subject: FYI---Re: Australian CDD Confirmation Paul, as per my voicemail - here is a draft confirm for weather - on the deems ISDA basis preparred by the guys downunder. Would like you professional input to help them with an interimsolution on this contract. Further down the line (and this should also be encompassed in the web stuff) we need to have alegal group that works toward producing a master contract confirm that can be used for all Weather deriv structures and used in a global marketplace. Just a quick job for a supremo like you!!! I'll talk to you on Monday when I get back into London about the politics!!! have a great weekend Nick ---------------------- Forwarded by Nick Mooney/LON/ECT on 13/04/2000 20:48 --------------------------- Raymond Yeow@ENRON_DEVELOPMENT 13/04/2000 13:38 To: Mark Tawney@ECT, Nick Mooney/LON/ECT@ECT, Steven Vu@ECT, Christian Werner/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: FYI---Re: CDD Confirmation David Minns 04/13/2000 12:17 PM To: Raymond Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Sara Shackleton@ECT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen J Lowe/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: CDD Confirmation Raymond attached is the CDD confirmation form. I have gone through the comments on the draft Jerven gave me. The only change I made is the inclusion of a weather station number in addition to a name. There was a question mark next to the website reference and a comment that there is no quality control for public access. Is the website reference OK? Sara this confirmation follows the ENA model. The changes only relate to the differing measurement references. We also included a paragraph 5 to further reduce the possibility of the trade being characterised as insurance. If ENA is the counterparty then it should be enough to reference the relevant ISDA Master Agreement and change the references to EAF to ENA.