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Enron Mail |
Yes Tana I do indeed remember meeting you. Let me give you some background
to our trading operation in Australia. As you mentioned at present we are only authorised to trade financial power. We expect to be trading weather and potentially crude oil derivatives soon. As far as the scope of our ISDA Agreements is concerned I will forward to you a response I sent to Jana Morse yesterday on this topic. Our GTCs have been drafted specifically for Australian power. If Australian counerparties wished to trade other products then the ISDA negotiations are handled through Houston and not through Sydney. As far extra provisions for Australian counterparties dealing in North American products - nothing particularly comes to mind. Clearly the document needs to be validly executed and the Australian Company Number should appear after the name. The choice of law clause should be effective. The challenge can on occasions be procedural points such as service of notices. Enforcing a foreign judgment in Australia as in the United States is not an automatic process but should be possible. Sorry tax is a little out of my area. Susan Musch is the best person to consult. A Letter of Credit should present few difficulties if properly worded and issued by an appropriate bank. Guaranties are considerably more complex issue and difficult to cover in a brief email. Needless to say it all depends on the facts. But if validly executed by a parent company that is unlikely to go into receivership or liquidation then it should OK. To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Tom Moran/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, David Forster/HOU/ECT@ECT Subject: Online Trading for Australia David, I know we've met before on your visits to Houston, I am a paralegal in the ENA Legal Department, in the Swap Group under Mark Taylor. I am the lead contact in ENA Legal for counterparty approvals and day to day trading issues for EnronOnline. I coordinate responses for the whole Legal Trading Group (financial, physical, power and emerging markets) with the EnronOnline and Credit teams. I understand from my EnronOnline team that I am going to need to approve financial trading for all my Houston based counterparties a week from Friday. Right now that list stands at about 600 counterparties (already trading). I was hoping you could direct me as to what restrictions, if any, we might have for financial trading in Australia. Are there any restricted counterparties, such as governmentals, utilities, banks, dealers, etc., or any restrictions on the products traded (initially I know we are only trading financial power, although I'm sure the list will expand over time). Have your GTC's been drafted with cross-border trading in mind? Similarly, I assume there will be Australian counterparties signing up to trade, and the commercial team will want them approved to trade the whole range of EnronOnline products. Are there any provisions we must add to the form of North American product GTCs if our counterparties trade a North American product from Australia? Do we have any tax issues or language we need to cover? Our standard form of GTC includes New York law and arbitration. Will that be enforceable in Australia? Are there any issues we need to address if we require collateral (a guaranty or letter of credit) with respect to a trade? Thanks for your help!
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