Subject: FYI - New Nordic Financial Power Documentation
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 28 May 1999 12:12:00 -0700 (PDT)

As part of the newly started revision of the NPTA terms, a group of some 16 
people meet in Stockholm yesterday for a half-day session at the offices of 
the Swedish SE Bank.  Since only half of the attendees were lawyers, and just 
the SE Bank attorney attending the meeting and myself have any greater 
experience from derivatives documentation and trading, the discussion was 
initially somewhat unstructured but gradually got on track; and I think I 
actually managed quite well in stiring the process towards a decent result.  
Minutes was taken and will be circulated in about a week.  In brief the 
following was agreed:  

An new Nordic financial power trading master is to be created.  This document 
shall be in English and be Anglo-American styled and contain all customary 
provisions and a schedule (plus proposed collateral arrangements and, if 
possible, a short Users Guide).  The intention is not to reinvent the wheel 
but rather to collect and seek inspiration from existing derivatives 
documentation in different markets.  I suggested that a law firm should be 
assigned to prepare the new doc., but the meeting rather thought that the 
initial work should be done by a working group (including Enron, the SE Bank, 
Eastern Energy, National Power, Sydkraft and Statkraft) and that legal 
opinions should be obtained in due course as to the enforceability of the new 
documentation in different jurisdictions.  The governing law issue was the 
issue mostly discussed and it was agreed that this matter supposedly had to 
be left to the option of the contracting parties.  The idea is to have the 
Nordic Power Traders' Association promote the new documentation,thereby 
obtaining wide acceptance for it in the market place.  

Since Enron is the only party in the formed working group experienced in both 
derivatives and commodities, this may be a chance for the company, if it 
desires, to take the initiative and promote, for instance, something in line 
with the ECT Houston Industrial Master.  The new doc. is thought to serve as 
a standard doc. for players that is unwilling, or unable, to use the ISDA 
documentation.  I'll keep you posted on the progress and please let me have 
your viewpoints.

Martin