Message-ID: <24219945.1075844537093.JavaMail.evans@thyme> Date: Mon, 24 Jan 2000 01:24:00 -0800 (PST) From: sara.shackleton@enron.com To: brent.hendry@enron.com Subject: Re: ISDA Enron Europe Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sara Shackleton X-To: Brent Hendry X-cc: X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Sent X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Have you and Mark ever discussed this? Have you spoken with Marval? I'd really like some more information. Thanks. SS P.S. Is tomorrow a holdiay in BA? ---------------------- Forwarded by Sara Shackleton/HOU/ECT on 01/24/2000 09:06 AM --------------------------- Brent Hendry@ENRON_DEVELOPMENT 01/24/2000 06:22 AM To: John J Shoobridge/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Sara Shackleton@ENRON_DEVELOPMENT, Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: ISDA Enron Europe John, I would be very interested to see what the local derivatives market is developing. My guess is that the document is probably being prepared for transactions between two Argentine companies. If this is the case I would also like to know what is being done on the tax side by the association to fix the tax problems caused by doing swaps in Argentina. If the Argentine Association of Derivatives has a draft we would like to study it. Also, are we going to become a member of this association and are we going to send someone to the meetings regularly? Do we have any brochures or other information regarding the makeup of the association? From my conversations with Mark Taylor I do not think that ISDA has any plans to implement a Spanish language ISDA master. The translation process of the master, the schedules, and all of the various definition books would be a serious undertaking (there are literally hundreds of pages of documentation that would have to be legally translated). And most US companies that make a market in derivatives products would not have the legal and back-office personnel to negotiate and process masters and transactions in Spanish. I know that ENA does not have the capacity to do this at the moment. I think the only other language ISDA is published in is Japanese and that is a restricted format used only between two Japanese companies for a limited number of types of trades specific to the Japanese market. English will likely remain the language of choice in international transactions such as what we are doing now between ENA and Argentine counterparties. If the tax situation in Argentina were to change and ESA sets up its own trading entity in Argentina with front, back and middle offices, then the language issue could be assessed locally. I wish there were a simple answer to the current situation. Please keep me updated in any local market information you come across. Thanks, Brent John J Shoobridge 23/01/2000 02:01 PM To: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Sara Shackleton@ENRON_DEVELOPMENT, Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: ISDA Enron Europe I'm in the need of informing the whole team that Argentina through the Argentine Association of Derivatives has developed a document that's circulating in the market and will surely be optimised to the extent that Argentine companies will use it in the near future if not inmediately. This document has been prepared by experienced groups of professionals with foreign support on terms of credit and legal issues. My impression is that will be competing against that document in a great deal of disadvantage. This disadvantage will be a "cultural" disadvantage from the moment that latin american countries tend to have "shorter" documents written in the local language where the transaction is taking place. If the ISDA was at least written in Spanish (rather than French or German) it would be of great help. This is an issue that really "tickles" me: Why isn't the ISDA document translated into Spanish being that it is after English probably the language most spoken through out the globe and second that there's much more opportunity of selling Risk Management Products to Latin American countries rather than French companies through my more than disappointing experience in trying to close a deal with French Total. I believe Sara's visit would be more that important. I'll try to forward everybody a copy of the document that was drafted in Argentina for everybody's info. I strongly believe in the matters of evolution and I'm sure that in the future ESA's market will mature in such a way that will just like Enron Europe a document to match market's needs.