Message-ID: <27179263.1075844499792.JavaMail.evans@thyme> Date: Thu, 17 Aug 2000 21:28:00 -0700 (PDT) From: sheila.glover@enron.com To: ted.murphy@enron.com, william.bradford@enron.com, sara.shackleton@enron.com Subject: Online Trading Platforms Cc: mike.fowler@enron.com, jeff.kinneman@enron.com, madhur.dayal@enron.com, john.greene@enron.com, david.vitrella@enron.com, selena.gonzalez@enron.com, theresa.brogan@enron.com, aneela.charania@enron.com, samantha.davidson@enron.com, samantha.boyd@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: mike.fowler@enron.com, jeff.kinneman@enron.com, madhur.dayal@enron.com, john.greene@enron.com, david.vitrella@enron.com, selena.gonzalez@enron.com, theresa.brogan@enron.com, aneela.charania@enron.com, samantha.davidson@enron.com, samantha.boyd@enron.com X-From: Sheila Glover X-To: Ted Murphy, William S Bradford, Sara Shackleton X-cc: Mike Fowler, Jeff Kinneman, Madhur Dayal, John Greene, David J Vitrella, Selena Gonzalez, Theresa T Brogan, Aneela Charania, Samantha T Davidson, Samantha Boyd X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Notes inbox X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Ted, Bill and Sara, ECT Investments Inc. is wanting to establish execution only agreements for on-line trading for the Convertble and credit books. These services are new and the trading desk wants to be able to utilize. We will establish only one relationship with ECT Investments Inc. at this time and all clearance will be done through our prime brokers. [Books are maintained separately at all prime brokers.]. Sheila ---------------------- Forwarded by Sheila Glover/HOU/ECT on 18/08/2000 04:16 --------------------------- Mike Fowler@ENRON 17/08/2000 16:01 To: Sheila Glover/HOU/ECT@ECT cc: Madhur Dayal/HOU/ECT@ECT Subject: Online Trading Platforms I'm working with Sara on legal issues related to Buy Side Direct. Is my understanding correct that approval from Risk Control and Credit is required to initiate trading, and that you are requesting their approval for Buy Side Direct as well as the other sites listed below ? Please let me know if I should be involved in this process. Any feedback regarding expected timing of this approval would also be appreciated. Thanks. Mike x39990 ---------------------- Forwarded by Mike Fowler/Corp/Enron on 08/17/2000 01:55 PM --------------------------- Mike Fowler 08/15/2000 10:21 AM To: Sheila Glover/HOU/ECT@ECT cc: Sara Shackleton/HOU/ECT@ECT, Jeff Kinneman/HOU/ECT@ECT, Madhur Dayal/HOU/ECT@ECT Subject: Online Trading Platforms I am requesting that online trading agreements be executed with the following bond trading platforms which we are evaluating: Site Initial Corporate Bond Categories * Type Site Status Buy Side Direct Convertibles (+ Equity Hedge) ** Cross Matching Aug 15th Launch Trading Edge / Bond Link High Yield, Convertibles Cross Matching Live LIMITrader High Yield, Convertibles Cross Matching Live Market Axess Investment Grade Multi-Dealer *** August Launch * Additional corporate bond categories may be added in the future. For example, Market Axess expects to add high yield and convertible bonds within 3 to 6 months. ** John Greene is aware that convertible bond transactions through Buy Side Direct will involve offsetting equity hedges. *** We have execution agreements in place with all current Market Axess dealers. Potential benefits offered by online sites include trading flows and improved execution efficiency. In addition, these sites provide opportunities for generating demand for EnronCredit.com credit derivatives, given that users of these sites are buyers or sellers of corporate credit risk. The ability to trade will greatly enhance our evaluation of these sites. As noted above, 3 of the 4 sites are cross-matching, where trading is completely anonymous and the site's sponsor or clearing firm are the nominal counterparty for all trades. One of the 4 sites will be a multi-dealer system where counterparties transact directly with a particular dealer. Trades for all sites would be cleared through prime brokers with whom we have existing agreements. As you suggested, we should ensure that agreements with online trading platforms allow for trading by ENA, ECT Investments and EnronCredit.com. My understanding is that Sheila's group would coordinate the opening of any additional accounts required to facilitate trading by each entity. I suggest that Madhur Dayal be designated initially at the person to receive notification of material changes to agreements. We should retain the ability to change this contact person. Thanks. Mike x39990