Subject: Derivatives trading in France
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 1 Oct 1999 03:26:00 -0700 (PDT)

Mark, you may recall my memo to you in April, 1999 which indicated that for 
netting purposes, the conditions included:

1.  The transaction must be governed by a market standard master agreement or 
occur on a French regulated market

2.  One of the parties must be (a) an "investment firm" within the meaning of 
the law of 2nd of July, 1996, (b) an instituion or firm benefitting from the 
provisions of article 25 of the Law or (c) a non-resident entity having a 
"comparable status"

The term "investment firm" embodies financial type institutions which recieve 
and transmit order for financial instruments for third parties.

There are 12 categories of article 25 firms (including Bank of France, 
insurance companies, broker types, etc.)  .For example, one murky designation 
includes "persons who supply an investment service which is ancillary to 
their professional activity, provided the rules governing such activity do 
not prohibt the carrying on of investment services".  Slaughter and May has 
advised that they could assist us in determining whether our French 
counterparty fit this category and it definitely needs to be discussed with 
the counterparty (and extract a rep from them as well).  There are other 
categories as well.   I have a copy of the law if you would like to review.

The non-resident entity having "comparable status" is the category WE were 
trying for fit into without much success.

Tana tells me that I have given you misinformation.  Perhaps the law has 
changed and Justin has a recent update.  

ENA has a Soc Gen master, and we have recently sent a Deemed ISDA to a French 
corporate (one shot deal only).