Message-ID: <22210912.1075858601602.JavaMail.evans@thyme> Date: Fri, 31 Aug 2001 15:04:38 -0700 (PDT) From: legal <.taylor@enron.com> To: brad.richter@enron.com, greg.piper@enron.com Subject: What does it mean to be registered with the CFTC as a Trading Facility Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Taylor, Mark E (Legal) X-To: Richter, Brad , Piper, Greg X-cc: X-bcc: X-Folder: \MTAYLO1 (Non-Privileged)\Taylor, Mark E (Legal)\Sent Items X-Origin: Taylor-M X-FileName: MTAYLO1 (Non-Privileged).pst Requirements for Electronic Trading Facilities for Exempt Commodities Transactions must be principal to principal (no brokers) Parties must be Eligible Commercial Entities Same as Eligible Contract Participants ($10 mil. total assets or $1 mil. net worth) except: Must: have demonstrable ability to make or take delivery of the underlying commodity, or incur risks, in addition to price risk, related to the commodity, or be a dealer May not be a(n): investment company commodity pool employee benefit plan individual The facility must: Register with the CFTC giving: Name, address, person to receive notices Commodity categories to be traded Certifications that: Executives meet certain qualifications The facility will comply with exemption conditions The facility will notify the CFTC of any changes in information provided Identity of any clearing organizations to be used Give the CFTC access to trading protocols and electronic access to the system Provide reports to the CFTC regarding executed transactions as requested by the CFTC Maintain records of all transactions and participants for 5 years and give the CFTC access to the records Publicly disseminate price, trading volume and other trading data as required by the CFTC On special request, deliver to the CFTC such other information as it may request Transactions on such facilities are subject to the anti-fraud and anti-market manipulation jurisdiction of the CFTC