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Enron Mail |
I have attached hereto a copy of our memorandum dated September 20, 1999
which had previously been provided to Mark Taylor setting forth our analysis of Canadian (Alberta/Ontario) legal/regulatory issues concerning the entering into of commodity based OTC products by Enron with counterparties on line through what was then Enron's proposed internet based trading system. The proposed extension of that system to coffee, sugar and cocoa swaps/options does not present any unique issues under Alberta or Ontario laws. Note that in reviewing the Septermber 20, 1999 memorandum, the Proposed Rule of the Ontario Securities Commission on OTC derivatives (which was not in effect as at the time of that memorandum) was eventually not implemented; accordingly, that part of the discussion regarding the Proposed Rule can be ignored. Moreover, I understand that Ontario has, subsequent to the date of that memorandum, adopted the Uniform Electronic Commerce Act published by the Uniform Law Conference of Canada which is based on the United Nations Model Law on Electronic Commerice and which, in short, gives legal efficacy to electronic documents and contracts. Alberta has not yet adopted such legislation. I trust this is satisfactory for your purposes. Please contact me should you require anything further. Regards. <<< <Robert.Bruce@enron.com< 04/19/01 05:36PM <<< Fred, as a follow-up to our telephone conversation, we would like to launch some new products on EnronOnline -- swaps on coffee, sugar and cocoa (the agricultural "softs"). We would like to know if Canadian law presents any sort of restrictions or other issues with respect to financially settled derivatives on these commodities. We would like an analysis with respect to both swaps and options (however, if timing becomes an issue, we should concentrate on swaps, as our offering of swaps is more imminent). We are looking at rolling out with nine products -- for each of the three commodities, there will be a calendar-month swap tied to (i) the New York Board of Trade price, (ii) the LIFFE price, and (iii) the spread between the two exchange prices. We would like the results of your analysis by April 27. Please feel free to call me with any comments or questions you may have. Thank you for your assistance with this -- Bob Bruce Robert E. Bruce Senior Counsel Enron Wholesale Services T (713) 345-7780 F (713) 646-3393 robert.bruce@enron.com - 2rtb05!.DOC
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