Message-ID: <25528110.1075844465228.JavaMail.evans@thyme>
Date: Wed, 6 Dec 2000 06:49:00 -0800 (PST)
From: melba.lozano@enron.com
To: sara.shackleton@enron.com, mark.taylor@enron.com
Subject: Re: EOL description change
Cc: kevin.meredith@enron.com, steve.jacobellis@enron.com, robert.cass@enron.com
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Please approve the following change to the product description.  If you have 
any questions please let me know.  Steve needs this approved as soon as 
possible.

Thanks,

Melba
58986

 Bolded for your ease of reference:

From:

A currency Transaction with Risk Management & Trading Corp. ("RMT") under 
which either (A) for the case in which Counterparty submits an offer to buy 
from RMT, Counterparty shall pay a Fixed Amount and shall receive the 
Floating  Amount, or (B) for the case in which Counterparty submits an offer 
to sell to RMT, Counterparty shall receive the Fixed  Amount and shall pay 
the Floating  Amount. Each calendar month during the term of the Transaction 
will be a Determination Period; provided however, that in the event the term 
of the Transaction is less than one calendar month, the Determination Period 
shall be the term of the Transaction. The Notional Amount per Determination 
Period shall equal the volume submitted by the Counterparty via the website 
divided by the number of Determination Periods during the term of the 
Transaction. The Fixed  Amount payable per Determination Period shall equal 
the product of  the Notional Amount per Determination Period multiplied by 
the price submitted by the Counterparty via the website. The Floating Amount 
payable per Determination Period shall equal the product of the Notional 
Amount per Determination Period multiplied by the Index. The Payment Date 
shall be the Valuation Date.

The term of the Transaction shall be from the Effective Date of 01 Feb 2001 
to the Termination Date of 01 Feb 2001.
The Index for each Determination Period shall be the USD/CAD rate equal to 
the rate set forth on Rueters page BOFC under the headings 'Bank of Canada'; 
'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 
12:00 p.m. noon, Toronto time, on the Valuation Date. The Valuation Date for 
each Determination Period shall be the last Business Day of such 
Determination Period.
The price is quoted in Canadian Dollars per unit of volume, which will be the 
Contractual Currency.
The unit of measure against which the price is quoted shall be US Dollars, 
and each unit of volume shown represents one million US Dollars ($1,000,000).

To:

A currency Transaction with Risk Management & Trading Corp. ("RMT") under 
which either (A) for the case in which Counterparty submits an offer to buy 
from RMT, Counterparty shall pay a Fixed Amount and shall receive the 
Floating  Amount, or (B) for the case in which Counterparty submits an offer 
to sell to RMT, Counterparty shall receive the Fixed  Amount and shall pay 
the Floating  Amount. Each calendar month during the term of the Transaction 
will be a Determination Period; provided however, that in the event the term 
of the Transaction is less than one calendar month, the Determination Period 
shall be the term of the Transaction. The Notional Amount per Determination 
Period shall equal the volume submitted by the Counterparty via the website 
divided by the number of Determination Periods during the term of the 
Transaction. The Fixed  Amount payable per Determination Period shall equal 
the product of  the Notional Amount per Determination Period multiplied by 
the price submitted by the Counterparty via the website. The Floating Amount 
payable per Determination Period shall equal the product of the Notional 
Amount per Determination Period multiplied by the Index. The Valuation Date 
for each Determination Period shall be the first Business Day of such 
Determination Period.


Thank you,

Melba
58986 



Steve Jacobellis@ENRON
11/30/2000 12:20 PM
To: Dale Neuner/HOU/ECT@ECT
cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT 
Subject: Re: EOL description change  

In order to get around the wording on the Jan 02 product,  how about if it 
states "The Valuation Date for each Determination Period shall be the first 
Business Day of such Determination Period."  
This way the determination period is still one calender month and instead of 
the payment being the last day it will be the first day of the month.
Let me know if you think this will work.

Thanks,

Steve





Dale Neuner@ECT
11/30/2000 10:18 AM
To: Steve Jacobellis/NA/Enron@ENRON
cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT 

Subject: Re: EOL description change  

The last line in the first paragraph (which is the Product Type description) 
states that the The Payment Date is the Valuation Date. This was written 
specifically to be able to handle day-long and month-long transactions, as 
the Index states that the Valuation Date is that last day of each 
Determination Period. That being the case, the language being proposed would 
alter the operation of Valuation Dates as they relate to month-long 
transactions, so we should not make the change.

Dale






Steve Jacobellis@ENRON
11/30/2000 09:13 AM
To: Dale Neuner/HOU/ECT@ECT
cc: Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT 
Subject: Re: EOL description change  

The valuation date is agreed upon on the point and click because the product 
is a Jan 02, 2001 product.  That is the settlement  date for the transaction.

Steve
 



Dale Neuner@ECT
11/30/2000 09:08 AM
To: Steve Jacobellis/NA/Enron@Enron, Robert B Cass/HOU/ECT@ECT, Melba 
Lozano/HOU/ECT@ECT
cc: William Stuart/HOU/ECT@ECT 

Subject: EOL description change

I am forwarding this to Rob and Melba, who will assist you with this, as I am 
no longer involved in the day-to-day work regarding the development of 
Products for EnronOnline.

Rob/Melba/Steve:

One question comes to mind immediately; the suggested language states  "The 
Valuation Date for each Determination Period shall be the date submitted by 
the counterparty." When is this date being submitted, and how is this 
submission taking place? Please investigate this.  I would think that (i) if 
the Valuation Date of the transaction is unknown on Trade Date then the 
integrity of the economics of the deal hasn't been established, and (ii) if 
this requires a follow-up phone call after the trade is done on EOL, the 
'point and click' trading isn't accomplished.

Dale



---------------------- Forwarded by Dale Neuner/HOU/ECT on 11/30/2000 08:28 
AM ---------------------------


Steve Jacobellis@ENRON
11/29/2000 05:00 PM
To: Dale Neuner/HOU/ECT@ECT
cc: William Stuart/HOU/ECT@ECT 
Subject: EOL description change

Dale,

Below are proposed descriptions of two EOL products that we need to change.  
Our Calgary office needs to change the settlement date for these products so 
I changed the descriptions to match their wishes.  These products are not 
active yet because I need to switch the descriptions in the product manager. 
The proposed changes are in bold faced type.  Do you do that or am I able to 
change the product description in the product manager?  Also, are we able to 
just switch the description or do we need to get approval from someone else?
if you have any questions please call me at extension 3-7214.

Thanks,

Steve  

For Curr Par Fwd Reuters BOFC            02Jan01         CAD/USDm
A currency Transaction with Risk Management & Trading Corp. ("RMT") under 
which either (A) for the case in which Counterparty submits an offer to buy 
from RMT,
Counterparty shall pay a Fixed Amount and shall receive the Floating  Amount, 
or (B) for the case in which Counterparty submits an offer to sell to RMT,
Counterparty shall receive the Fixed  Amount and shall pay the Floating  
Amount. Each calendar month during the term of the Transaction will be a 
Determination Period;
provided however, that in the event the term of the Transaction is less than 
one calendar month, the Determination Period shall be the term of the 
Transaction. 
The Notional Amount per Determination Period shall equal the volume submitted 
by the Counterparty via the website divided by the number of Determination 
Periods 
during the term of the Transaction. The Fixed  Amount payable per 
Determination Period shall equal the product of  the Notional Amount per 
Determination Period 
multiplied by the price submitted by the Counterparty via the 
website. The Floating Amount payable per Determination Period shall equal the 
product of the Notional Amount per Determination Period multiplied by the 
Index. 
The Payment Date shall be the Valuation Date.
The term of the Transaction shall be from the Effective Date of 02 Jan 2001 
to the Termination Date of 02 Jan 2001.
The Index for each Determination Period shall be the USD/CAD rate equal to 
the rate set forth on Rueters page BOFC under the headings 'Bank of Canada';
 'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 
12:00 p.m. noon, Toronto time, on the Valuation Date.
 The Valuation Date for each Determination Period shall be the date submitted 
by the counterparty.
The price is quoted in Canadian Dollars per unit of volume, which will be the 
Contractual Currency.
The unit of measure against which the price is quoted shall be US Dollars, 
and each unit of volume shown represents one million US Dollars ($1,000,000).

For Curr Par Fwd Reuters BOFC            Dec00-Mar01     CAD/USDm
A currency Transaction with Risk Management & Trading Corp. ("RMT") under 
which either (A) for the case in which Counterparty submits an offer to buy 
from RMT,
 Counterparty shall pay a Fixed Amount and shall receive the Floating  
Amount, or (B) for the case in which Counterparty submits an offer to sell to 
RMT, 
Counterparty shall receive the Fixed  Amount and shall pay the Floating  
Amount. Each calendar month during the term of the Transaction will be a 
Determination Period; provided however, that in the event the term of the 
Transaction is less than one calendar month, the Determination Period shall 
be the 
term of the Transaction. The Notional Amount per Determination Period shall 
equal the volume submitted by the Counterparty via the website divided by the
 number of Determination Periods during the term of the Transaction. The 
Fixed  Amount payable per Determination Period shall equal the product of 
 the Notional Amount per Determination Period multiplied by the price 
submitted by the Counterparty via the 
website. The Floating Amount payable per Determination Period shall equal the 
product of the Notional Amount per Determination Period multiplied by the 
Index. 
The Payment Date shall be the Valuation Date.
The term of the Transaction shall be from the Effective Date of 01 Dec 2000 
to the Termination Date of 31 Mar 2001.
The Index for each Determination Period shall be the USD/CAD rate equal to 
the rate set forth on Rueters page BOFC under the headings 'Bank of Canada'; 
'Canadian Dollar' Exchange rates';'Noon', opposite the caption 'USD' as of 
12:00 p.m. noon, Toronto time, on the Valuation Date. 
The Valuation Date for each Determination Period shall be the first Business 
Day after the end of such Determination Period.
The price is quoted in Canadian Dollars per unit of volume, which will be the 
Contractual Currency.
The unit of measure against which the price is quoted shall be US Dollars, 
and each unit of volume shown represents one million US Dollars ($1,000,000).