Message-ID: <14667690.1075844500245.JavaMail.evans@thyme> Date: Tue, 15 Aug 2000 03:21:00 -0700 (PDT) From: mike.fowler@enron.com To: sheila.glover@enron.com Subject: Online Trading Platforms Cc: sara.shackleton@enron.com, jeff.kinneman@enron.com, madhur.dayal@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sara.shackleton@enron.com, jeff.kinneman@enron.com, madhur.dayal@enron.com X-From: Mike Fowler X-To: Sheila Glover X-cc: Sara Shackleton, Jeff Kinneman, Madhur Dayal X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Notes inbox X-Origin: SHACKLETON-S X-FileName: sshackle.nsf 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