Message-ID: <32222129.1075844454907.JavaMail.evans@thyme>
Date: Tue, 20 Jul 1999 03:01:00 -0700 (PDT)
From: dale.neuner@enron.com
To: sara.shackleton@enron.com
Subject: Trades Terminated or in Dispute
Cc: jefferson.sorenson@enron.com
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Pursuant to our conversation, the different scenarios for trades in dispute 
are (and may not be limited to) the following:

Trade agreed Trade not booked    No confirm sent
Trade agreed Trade booked  Killed on T/D  No confirm sent
Trade agreed Trade booked  Killed after T/D  No confirm sent
Trade agreed Trade booked  Trade killed  Confirm sent

Trade booked Trade disputed     No Confirm sent
Trade booked  Trade disputed     Confirm sent

Examples:

Scenario 1: the CP calls back one hour after the trade was agreed and states 
they now do not agree with the trade. Essentially, it could be disputed 
wether or not we had a trade, even though our tapes support our position. No 
impact on booking or Confirmation Desk.

Scenarios 2 and 3 occur essentially the same as Scenario 1 with the exception 
that the trade is booked. Scenario 2 and 3 a different based on the pricing 
implication of a trade booked overnight. In both these scenarios, we should 
consider issuing a Termination Agreement which gives some reference to the 
details of the agreed transaction.

Scenario 4 is the most straight-forward. An agreed trade, booked and 
Confirmed, we issue a Termination Agreement.

Scenarios 5 and 6 are different from Scenarios 2 and 3 in that we have booked 
a trade based on our understanding, but OUR understanding of the terms was 
incorrect. The two scenarios are different in that in 5 a Confirmation is not 
sent. In 5, we should consider issuing a side letter stating that a trade was 
booked in error and no such trade exists. In 6 we should consider issuing a 
side letter stating the trade was booked AND the Confirmation was sent in 
error - and ask that they return the Confirmation.