Message-ID: <13248427.1075860037326.JavaMail.evans@thyme>
Date: Mon, 11 Dec 2000 05:53:00 -0800 (PST)
From: mary.cook@enron.com
To: mark.taylor@enron.com, peter.keohane@enron.com, tana.jones@enron.com
Subject: Ontario Securities
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See below:  The new rule was bounced back to the OSC by the Minister of=20
Finance.  Keep me advised if you receive any further information as and whe=
n=20
it may be reconsidered.  Thanks.  Mary


On September 8, 2000, the Commission delivered Rule 91-504 Over-the-Counter=
=20
Derivatives (the "Rule") and Companion Policy 91-504CP (the "Policy") to th=
e=20
Minister of Finance for approval under section 143.3 of the Securities Act.=
=20

On November 2, 2000, the Minister returned the Rule and the Policy to the=
=20
Commission for further consideration by the Commission of the need for the=
=20
Rule, especially in regard to the balance between the costs and other=20
restrictions on market participants and the objectives of the Rule, and=20
whether the Commission=01,s objectives in connection with the regulation of=
=20
over-the-counter derivatives can be achieved by a rule that identifies the=
=20
specific classes of transactions and related parties that will be regulated=
=20
as opposed to having provisions of the Securities Act apply to all=20
over-the-counter derivatives transactions and then providing exemptions fro=
m=20
that application. The Minister indicated that a more detailed review of the=
=20
nature and extent of any disclosure issues in retail over-the-counter=20
derivatives transactions would be helpful in determining the appropriate=20
approach.




Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com