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Enron Mail |
Let me try and be clear on this, as I'm not sure if you are waiting for me to
make a decision on this, or vice versa: 1). Energy operations believes, as per yesterday's conversation, that the vast majority of errors on broker trades are caught in the check out with the broker and end of trading day. 2). Enron is currently taking the risk on brokered trades of errors in showing up many days/months after trade confirmations go out. 3).The brokers we are willing to offer this product to are ones that we have had a long and stable relationship with. Having said all that I'd like to make the following decision: The margin we hold is to protect for the event that we have a bust with 1). At Trade date plus three days we assume that any errors the broker may have made have come to light, presumably through counterparty letting us know that our confirm contained an error, and that any subsequent problems are between Enron and Counterparty. We can ask to have margin cover all outstanding trades that were generated by broker, but I can't for the life of me understand why anyone would sign that, as we are Enron already takes that risk and we are not even going to be paying them brokerage. If this presents problems for you let's discuss. Thanks Andy
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