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Enron Mail |
Remember our discussion yesterday?
Jens ---------------------- Forwarded by Jens Gobel/EU/Enron on 26/01/2001 19:18 --------------------------- Enron North America Corp. From: Alex Heath @ ECT 26/01/2001 12:30 To: Enron Metal & Commodity - UK traders, Enron Metal &Commodity - Global Traders, Enron Metals Global a/es, Enron Metals lme Dealers, Enron Metals London A/E's, Enron Metals ORIGINATION TEAM, ENRON METALS SCRAP GROUP, ENRON ONLINE MKTG cc: Subject: ENRON METALS WEEKLY REVIEW Enron Metals Weekly Review Good evening ...one and all . It hardly seems possible that we are another week on already such has been the pace of activity here . The ebb and flow in the Ali market both in the spreads and outright price have kept our valiant dealers on their toes as seemingly the whole market vies to avail itself of our pricing and liquidity services on-line ! . Daily volumes have continued to grow with over 800 separate transactions being seen today! . In fact volumes have risen by approximately 56% since December from a daily average of 357 to a daily average of 557 for January .At the same time the regular Non-EOL transaction count has decreased from about 1800 trades a day to 1586 trades since December. Your efforts at getting the registered customers who had not completed an on line trade are beginning to pay dividends finally - but the migration remains painfully slow . Keep plugging away The graph above illustrates the growth of our average daily online transaction volumes in relation to our regular transaction volume on a monthly basis from July of 99 to date . This week's daily transaction volume is another record and but for the blip on Monday which put down to the Mother's day in Africa holiday would have been sensational . We have asked for your response to several queries over the past three weeks and have received little or no reaction. Consequently we shall ask again. Currently at the top of the list: if each of you could create a list of Metals Conferences you believe would be beneficial for Enron metals to attend, speak at and/ or have metals or EnronOnline presence, it would be greatly appreciated. This is a multi faceted sales and marketing tool for your benefit . Aside from the overall goal of creating a unified metals marketing plan, we are also trying to prepare a budget to assure that proper attention and funds are given Enron metals Global exposure in 2001 . Therefore, if we do not receive your recommendations well in advance we will not be in a position to sponsor them . We have created a conference listing which will be circulated next week . Please add to it if we have missed any off . and mark onto our list those you think should have our attention . For those of you that missed it last week, we have attached another copy of the Account Application Form. The completion of this form for BOTH traditional and online customers will speed your client's access to trading with Enron Metals. The lack of contributions for this review from any of you is rather disappointing . We will continue to offer you items that you may find of use . However the purpose of this review is also to incorporate content from around the network of our global field offices. I know you are all very busy making money for the cause . This medium is a useful platform to get your message over . For those of you not on the circulation lists see the attached reports The Metals Crammer report The daily Options report Whilst not exactly a feature we thought it might be a useful exercise in client relationship damage limitation to explain what happens when a customer finds he cannot trade on line .This has begun to occur more regularly as our volumes and activity increase. Customers are allocated a credit line for EOL within the system based upon their agreements. This limit is set daily as a default against the clients name . basis the AS400 's net valuation of the client's position . The amount of available variation credit on the client's account on EOL is set as his limit f or the next days trading . If the client should trigger this limit during the next day's trading the system will reject the trade and lock out the customer . Not very user friendly as the customer is not told why . London credit (Hamish's team) get a red flag , as of course do the traders running the stack managers as they see the trade rejected. The problem now becomes one of frustration for the customer as the system will not allow him to liquidate his position either in part or whole .He will have to pick the phone to do this . Secondly the resetting of any limit in the system takes 48hrs . This is being worked on but we must remember that Metals are the only futures products on the system and the other OTC products on the system are dealt with differently . It also serves to highlight that clients with small credit lines in the 1 to 200,000 dollar range are not really suited to use EOL . Security such as g/tees and cash are taken into account but can be missed ,but forward profits are as it is net availability that is used on the AS400. This will all improve with the introduction of a new bridge between the Enron risk system and the AS400 in the very near future . In the meantime it will be up to you to keep the peace and explain to your clients . Get them to keep within their limits . Call them quickly when they get locked out. Remember, we are here to help your efforts and help create positive communication lines between our offices world-wide. So, send us your thoughts, questions, concerns, local area market news etc. We will look forward to hearing from you. Cheers, Alex and Molly Alex Heath Molly Hellerman alex.heath@enron.com molly.hellerman@enron.com +44 207 783 2071 +44 207 783 5198
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