Message-ID: <6317685.1075858609906.JavaMail.evans@thyme> Date: Tue, 14 Aug 2001 09:42:12 -0700 (PDT) From: legal <.taylor@enron.com> To: lisa.yoho@enron.com Subject: RE: E-commerce and steel Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Taylor, Mark E (Legal) X-To: Yoho, Lisa 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 1. EnronOnline is not an exchange, it is a bilateral transaction system. It differs from futures exchanges in many respects including the following: (i)an Enron entity is a counterparty to every transaction concluded over the system; (ii) EnronOnline transactions are not cleared; (iii) the transactions concluded on the system are forward contracts or derivatives, not futures; and (iv) access to EnronOnline is restricted to commercial entities, i.e. no retail transactions are concluded on EnronOnline. 3. EnronOnline transactions are not cleared through any third party mechanism. Enron evaluates the credit of its customers and determines how much credit exposure it is willing to take with respect to each of them. -----Original Message----- From: Yoho, Lisa Sent: Friday, August 10, 2001 11:12 AM To: Taylor, Mark E (Legal) Subject: FW: E-commerce and steel Mark: Could you (or someone in your group) help with questions 1 and 3? Thanks so much. Lisa -----Original Message----- From: Murray, Julia Sent: Monday, August 06, 2001 4:17 PM To: Yoho, Lisa; Taylor, Mark E (Legal) Cc: Hermans, Greg Subject: FW: E-commerce and steel The attached is a request that we received from the U.S. Trade Commission in connection with the pending 201 proceeding. We need to coordinate a response. Please review and I will coordinate a meeting to discuss. Thanks, Julia -----Original Message----- From: Hermans, Greg Sent: Monday, August 6, 2001 1:36 PM To: Murray, Julia Subject: FW: E-commerce and steel as per phonecall... Let's discuss Greg -----Original Message----- From: Vincent DeSapio [mailto:desapio@usitc.gov] Sent: Monday, August 06, 2001 12:39 PM To: Hermans, Greg Subject: E-commerce and steel Dear Mr. Hermans: The following are the questions I referred to in the the phone message of August 6. 1. In what significant ways does Enron Online differ from the London Metal Exchange or the New York Mercantile Exchange in the trading of futures contracts (apart from the specific metals it trades) or from other on-line exchanges in the trading of physical metal? 2. What are the most important benefits that a public exchange like Enron's brings to the steel industry? 3. Does Enron have a trade clearing mechanism to guarantee the creditworthiness of suppliers and customers? 4. Why have some on-line steel trading sites failed? 5. Are there particular problems in trading steel on-line versus oil, agricultural products, or any of the other products that are successfully traded on-line? Any information you are able to supply would be greatly appreciated. Vincent DeSapio U.S. International Trade Commission 500 E. Street, SW Washington, DC 20436 202-205-3435 (phone)