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Paul:=20
Is this resolved? Let me know if we need to discuss further. Mark =09Paul Simons =0911/16/2000 11:24 AM =09=09=20 =09=09 To: Mark E Haedicke/HOU/ECT@ECT =09=09 cc: Michael R Brown/LON/ECT@ECT =09=09 Subject: Enron Corp - Risk Management Policy Mark Further to my voicemail, I attach the string of emails which highlights the= =20 concern relating to personal trading by Enron staff (please see section VII= -=20 Miscellaneous - Employee Trading). I appreciate you are tied up at a management conference, but if you could= =20 possibly get word to me on who I should speak to to resolve this, I would b= e=20 very grateful. Many thanks Paul 207 783 6566 ---------------------- Forwarded by Paul Simons/LON/ECT on 16/11/2000 17:19= =20 --------------------------- =20 From: Ted Murphy = =20 13/11/2000 16:58=09 =09 =09 =09 =20 =09 To: David Redmond/LON/ECT@ECT cc: Mark Taylor/HOU/ECT@ECT, Paul Simons/LON/ECT@ECT, Peter=20 Crilly/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT=20 Subject: Re: issue w/compliance ertificate =20 The answer on question 1, according to our usual interpretation, is yes - y= ou=20 may trade equities. The answer on question 2, according to our usual interpretation, is no - yo= u=20 should not trade Brent Futures. Ted David Redmond 11/13/2000 08:21 AM To: Mark Taylor/HOU/ECT@ECT cc: Paul Simons/LON/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Peter=20 Crilly/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT=20 Subject: Re: issue w/compliance ertificate =20 Mark, I am not sure I follow this but I will attempt to present my interpretation= =20 of your note. I am only restrained from trading those items in clause one if I am=20 responsible for trading them at Enron, and "equities" falls under=20 "securities" in clause one. "Equities" fall under clause one and are therefore not included in clause= =20 two. Therefore, since I do not trade equities for Enron, I can trade them o= n=20 my personal account. Brent Crude futures, I would argue, are "financial instruments," included i= n=20 clause one. I am not responsible for trading them for Enron. If they fall= =20 under clause one they are not included in clause two. Does this mean, since= =20 they are not in clause two and I do not trade them for Enron, I can trade= =20 them on my personal account? Perhaps you could give me a call, +44 207 783 4928. Thank you, Dave From: Mark Taylor on 10/11/2000 15:56 CST To: Cassandra Schultz/NA/Enron@ENRON cc: David Redmond/LON/ECT@ECT, Paul Simons/LON/ECT@ECT, Peter=20 Crilly/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT=20 Subject: Re: issue w/compliance ertificate =20 This issue was much easier when all we traded were energy commodities,=20 interest rates and currencies. The older versions of the policy provided th= at=20 no Enron employee may trade any energy commodity for the account of anyone= =20 other than Enron. Beyond that, no Enron employee could trade a commodity= =20 which was within their area of responsibility. For example, I was not=20 permitted to trade natural gas futures for my own account but, since intere= st=20 rates and currencies are not within my area of responsibility, I could trad= e=20 them. As the scope of our trading activities expanded it became more=20 difficult to identify the scope of the company's concern, much less to=20 articulate it. We did however take a stab at it and the result is below. = =20 This may be an area which could stand some clarification in the next versio= n=20 of the Policy. =20 For now, I would suggest that the term "security" highlighted below should = be=20 read to include equities and therefore not one of the commodities covered i= n=20 the second numbered clause (i.e. the word "other" refers to items other tha= n=20 those listed in clause (i)). The result is that an Enron employee who does= =20 not trade financial instruments, securities, financial assets or liabilitie= s=20 for Enron may trade them for his or her own personal account. To take this= a=20 step further, one could argue that an employee who trades the equities of= =20 energy companies for Enron should not trade energy company equities for his= =20 or her own account but could trade other equities - if it were me, I would= =20 certainly make sure that Ted Murphy agreed with my analysis before I did it= . =20 Of course, a wide variety of commodities remain clearly off limits for=20 personal trading - metals, ag commodities, bandwidth, freight, lumber, amon= g=20 many others - for all employees. As I remember it, this was done purposely= =20 and if anyone disagrees with the scope of the policy they would be wise to= =20 discuss the matter with the RAC Group as they make suggestions for Policy= =20 revisions to the Enron Corp. board. Employee Trading. No employee of any Enron Business Unit may engage in the= =20 trading of any Position for the benefit of any party other than an Enron=20 Business Unit (whether for their own account or for the account of any thir= d=20 party) where such Position relates to (i) any financial instrument, securit= y,=20 financial asset or liability which falls within such employee=01,s=20 responsibility at an Enron Business Unit or (ii) any other commodity,=20 included in any Commodity Group. =09Cassandra Schultz@ENRON =0911/08/2000 08:32 AM =09=09=20 =09=09 To: Mark Taylor/HOU/ECT@ECT =09=09 cc: David Redmond/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT, Peter=20 Crilly/LON/ECT@ECT, Paul Simons/LON/ECT@ECT =09=09 Subject: issue w/compliance ertificate To: Mark Taylor, Legal counsel for Market Risk Management Mark - would you please clarify this issue for us? Thank you, Cassandra Schultz. ---------------------- Forwarded by Cassandra Schultz/NA/Enron on 11/08/200= 0=20 08:26 AM --------------------------- David Redmond@ECT 11/08/2000 03:05 AM To: Cassandra Schultz/NA/Enron@ENRON cc: Araceli Romero/NA/Enron@Enron, Richard Lewis/LON/ECT@ECT, Peter=20 Crilly/LON/ECT@ECT=20 Subject: Re: 3rd Request - RESPONSE NEEDED ASAP - Risk Mgmt. Compliance=20 Certificate =20 Cassandra, Richard asked me to review this document before the traders on the UK Gas= =20 Desk would sign it. The UK gas desk adheres to all the risk management requirements of this=20 document. However, in Section VII , Miscellaneous, Employee Trading, the=20 document would appear to prevent any of us trading equities (amongst other= =20 commodities) on our personal account as Equity Trading is a Commodity Group= .=20 We are unsure if this is the aim of this agreement. We have asked our compliance officer, Paul Simons to clarify the impact of= =20 this clause for us. We are not ignoring the document, we are waiting for clarification. Thank you, David Redmond
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