Enron Mail |
Funny...This did not get mentioned in our meeting with Dave.
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 03/12/2001 05:19 PM --------------------------- From: Zhiyong Wei/ENRON@enronXgate on 03/12/2001 05:10 PM To: Jeffrey C Gossett/HOU/ECT@ECT cc: Russ Severson/HOU/ECT@ECT Subject: Single deal entry Jeff, I just found out that the development of phase1 single deal entry project didn't start as scheduled due to resource constraints. Therefore, the development won't be done until mid of April. Sorry for the delay. I will make sure to deliver it to you for testing by the middle of April. After consulting Russ and Sitara-TDS team, the phase1 single deal entry will allow users to enter simple types of physical deals at deal creation time. It does not provide any editing functionality. In other words, once the deals are saved to the system, any changes need to be done through both TAGG and Sitara. Please see below for a short list of complex deals that are not going to be captured in phase1. Russ helped me put the list together. Deal Types not Captured in the Phase1-Single-Deal-Capture 1. Deals with multiple locations each of which has different cost of gas because TAGG does not capture location information. For example, a 10-location deal will result in 1 Sitara deal with 10 CPR tickets and 10 TAGG legs. Each Tagg leg capturing the risk between contract price and mid for that location. 2. Structured deals which have different volume for different months and whose different risk components will be managed by different desks. 3. Tiered pricing structured deals that require one Sitara ticket and more than one TAGG ticket. For example, 15,000 deal volume in broken down to 5,000 at fixed price, 5,000 at NYMEX - 0.10 and 5,000 at the index. 4. Physical options because TDS deal capture does not handle physical options. 5. Trigger deals that allow setting prices before index settles. Basic trigger deal can be captured. Entry problem relates if price trigger is managed in a different book, or if different volume is triggered or untriggered, than the original deal volume. 6. Physical index deals with the index that is different from the mid for the location. Such deals need to be broken down into an index, a long basis and a short basis in TAGG. 7. Percentage index deals that require two legs in TAGG. One leg is index flat and the other is fixed price deal with zero fixed price and zero basis and reduced quantity. For example, a 90% index deal with a quantity of 5000 can be broken down into one leg of index flat and the other leg of zero fixed-price and zero basis and a quantity of 5000*0.1 = 500. 8. Floating basis deals. Deals can be entered with a price and physical premium component where the basis will default to the actual basis settle. These deals are sometimes entered as trigger deals with a floating basis. The deal looks like a straight index deal, however the price can be triggered and the basis will default to actual. I would appreciate your comments. Zhiyong
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