Message-ID: <33197802.1075860216198.JavaMail.evans@thyme> Date: Wed, 10 Nov 1999 16:05:00 -0800 (PST) From: cromwell@sullcrom.com To: mark.taylor@enron.com Subject: Sullivan & Cromwell Memo Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Imported For: SULLIVAN&CROMWELL --By: GW125.API" X-To: Mark Taylor X-cc: X-bcc: X-Folder: \Mark_Taylor_Jun2001\Notes Folders\Archive\11_99 X-Origin: Taylor-M X-FileName: mtaylor.nsf Re: Report by the President's Working Group on Financial markets on Over-the-Counter Derivatives Markets and the Commodity Exchange Act Attached is a memorandum from Sullivan & Cromwell concerning the above subject. A summary is also included at the end of the text of this e-mail message. The attached file is in Adobe Acrobat format. We believe most PCs will already have an Acrobat viewer loaded; we can provide free copies if Acrobat is not already loaded, and free copies can also be downloaded from the Adobe Acrobat web site at www.adobe.com. To view or print the memo use your e-mail system's function for opening attachments in their native format. Hard copies can be obtained from Ivy Moreno at S&C in New York, telephone 212-558-3448, e-mail: Morenoi@sullcrom.com. SUMMARY In order to resolve legal uncertainties regarding the status of over-the-counter ("OTC") derivatives under the Commodity Exchange Act (the "CEA"), Congress requested the President's Working Group on Financial Markets ("PWG") to report on, and make recommendations for legislative and regulatory changes with respect to, such instruments. On November 9, 1999, the PWG issued its report, entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act (the "Report"), which proposes a number of substantial changes to the CEA and the regulatory structure for a variety of OTC derivatives. Subject to the enactment of the recommended amendments to the CEA and regulations of the CFTC, the Report could substantially alleviate the legal uncertainty that currently exists with respect to OTC derivatives, thereby facilitating further growth and development in the markets for such instruments. ------------------------------------------------------------------------------ This e-mail is sent by a law firm and contains information that may be privileged and confidential. If you are not the intended recipient, please delete the e-mail and notify us immediately. - CMS10233.pdf