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Enron Mail |
See resolution memo from Andy Cornfield and Llloyd Fleming sent separately
---------------------- Forwarded by Mike Jordan/LON/ECT on 23/11/2000 12:37 --------------------------- From: Lloyd Fleming 22/11/2000 19:30 To: Rick Buy/HOU/ECT@ECT cc: Ted Murphy, David Port, Gary Hickerson/HOU/ECT@ECT, Shane Dallmann/LON/ECT@ECT, Michael J Hutchinson/EU/Enron@Enron, Tim R Jones/EU/Enron@Enron, Mike Jordan/LON/ECT@ECT Subject: Enron Metals FX Rick, I thought you might be interested in some information brought to me today by Andy Cornfield (Director with the London Risk Management Operations team), with regard to FX positions at Enron Metals:- The overall FX exposure of the metals business is not yet routinely laid off with the FX / Interest rates desk. Euro currency exposure associated with a Euro Aluminium option is managed by Tim Jones, the Head of the Metals Financial Trading desk. This position is managed under a limit of $30m, which was MG's old FX limit. Enron Metals is treating this limit as an Enron Corporate FX limit for the purposes of managing this position and all other FX exposure. Proprietary FX positions are occasionally being taken - most recently, Andy has found that yesterday a metals trader opened a long Euro 5 million position for value 28/11. The trader is not the principal FX trader on the metals desk, although he was formerly an FX trader with Billiton (acquired by MG in 1999) and he became MG's assistant FX trader prior to Enron's acquisition of MG. With regard to the last item, Risk Management and RAC discussed this with Mike Hutchinson and it was agreed that the Euro 5m position will be closed out tomorrow. As far as the first two items are concerned, RAC and Risk Management will be working with Commercial heads to help ensure that Enron Corporate policy is clearly communicated and applied. regards Lloyd Fleming RAC Market Risk Management Ph: + 44 20 7783 4532 Mobile: + 44 7760 17 87 42
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