Message-ID: <24478912.1075844457845.JavaMail.evans@thyme>
Date: Tue, 15 Jun 1999 08:11:00 -0700 (PDT)
From: patricia.cini@enron.com
To: sara.shackleton@enron.com
Subject: Re: RMT/EI Master Swap
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Please see Tanya's response below to my inquiry about the EI/RMT ISDA.  I am 
asking Ted Murphy to comment on this situation as well.

Regards,

Pat

---------------------- Forwarded by Patricia Cini/HOU/ECT on 06/15/99 03:11 
PM ---------------------------


Tanya Rohauer
06/15/99 01:18 PM
To: Patricia Cini/HOU/ECT@ECT
cc: William S Bradford/HOU/ECT@ECT 
Subject: Re: RMT/EI Master Swap  

Pat, 

I don't think the authorization issue relates to "entering into a swap" but 
rather "holding a position".  I think that as long as EI is not holding open 
a position, they are in compliance with authority controls.  Basically, this 
means that as long as EI does every trade back to back, they are not 
violating any controls. So, if EI enters into a swap with a third party, they 
must immediately offset that risk with an identical (but opposite position) 
swap with ECT. In this manner, EI never takes market risk, only ECT does. We 
may need to verify this with Ted, but this is my understanding. The confirm 
desk may be able to tell us if any deals were confirmed under the RMT/EI 
master, but I don't think we would know since we do not monitor intercompany 
exposure.

Thanks,
Tanya


   
	Enron Capital & Trade Resources Corp.
	
	From:  Patricia Cini                           06/15/99 11:58 AM
	

To: Tanya Rohauer/HOU/ECT@ECT
cc: William S Bradford/HOU/ECT@ECT 
Subject: RMT/EI Master Swap

Sara called Friday and advised that there is a Master Swap agreement between 
RMT and EI.  Since Ted Murphy advised that EI should not be entering into any 
swaps, she is wondering about this ISDA.

Is there a way to check to see if we have any existing transactions done 
under this ISDA?  It looks like this was set up so that EI could back to back 
a trade with a Polish affiliate and RMT did a back to back trade with Merrill.

Pat