Subject: Bullion Trading
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked]
Date: Tue, 16 Jan 2001 11:05:00 -0800 (PST)

Dear Mark, Peter and David,
Justin and I have now carried out the legal due diligence necessary to trade 
Bullion on EnronOnline with counterparties based in Sweden, Switzerland and 
South Africa.
 We intend to launch two products; a spot forward contract (based on a price 
fixed by our traders that is linked to the current traded price on the 
Reuters page) in both gold and silver. These trades are all cleared, by paper 
transfer, through the London Bullion Clearing System, and for this purpose 
each contracting party is required to appoint a Clearing member. There are a 
total of 7 Clearing members, all of which are banks or similar financial 
institutions, and all of which are regulated by the Bank of England.
 The Enron counterparty to each trade will be Enron Capital & Trade Resources 
International Corp. (as arranged by Enron Europe Finance & Trading Limited, 
the SFA regulated entity). Settlement will occur through the crediting or 
debiting of an unallocated gold account and the corresponding debiting or 
crediting of a cash account.
 Please would you advise whether trading with counterparties from your 
jurisdiction(s) in such products would give rise to any specific legal issues.
 The jurisdictions which I believe would fall under your remit are as follows:
 Mark: USA
  Peru
  Mexico
 Peter: Canada 
David: Australia    
If you have any questions or concerns please do not hesitate to contact 
either Justin or myself.
Kind Regards,

Ian Brungs