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Enron Mail |
Mark:
Based on our discussion, let me know if you concur with the draft chart below: CHART FOR TRADING CONTRACT CONFIRMATIONS BETWEEN TWO U.S. COUNTERPARTIES, AS OF 10/1/00 Type of Trade Contract Formation Method Trade Confirmation required to be sent? If yes, get signed by CP? Physical (w/ no Master) Phone Yes, but can be electronic No, unless commodity not "good" On-line No N/A Physical (w/ Master) Phone Yes, but can be electronic No On-line No, unless Master requires No Financial (w/ no Master) Phone Yes, but can be electronic Yes, unless NY law governs On-line No N/A Financial (w/ Master) Phone Yes, but can be electronic Yes, unless NY law governs On-line No, unless Master requires No In summary, as a result of the new U.S. federal legislation on e-signatures and contracts, on-line trades between two U.S. counterparties would not legally require the sending of a paper or electronic trade confirmation after the electronic contract is formed on-line unless expressly required by the applicable master trading agreement. An electronic confirmation, of course, could be sent if the counterparty elects to receive one. We agreed to obtain a legal opinion from outside counsel to confirm this conclusion. Regards, Alan
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