Subject: Online Trading Platforms
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 15 Aug 2000 03:21:00 -0700 (PDT)

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