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Enron Mail |
Amita,
Credit Risk - I am of a mind for Enron to accept the credit risk of metals transactions done through EnronOnline, bearing in mind that it will be Enron credit criteria which is applied, the short timeline and the fact that this sleeving agreement is intended to be a temporary arrangement until conclusion of the final purchase agreement. If it can be set up so they take the risk, then fine - but don't allow this to delay the process. Confidentiality - I assume we are covered by the current C.A. Please confirm with Eric Gadd. Performance - Enron's obligation is to the customer and MG's obligation is to us. Invoices - Probably prepared by MG and sent on Enron letterhead. We can download EnronOnline Transaction info. to MG if required. Please check with backoffice on this. Position - Assumed by MG Data Feeds - as normal for EnronOnline, with the addition of the financial product price and volume info. which we have discussed. Compensation for credit risk - See above note Dave Amita Gosalia@ECT 06/12/2000 03:53 PM To: Edmund Cooper/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT, Mark Taylor/HOU/ECT@ECT cc: Janine Juggins/LON/ECT@ECT, Lara Fields/HOU/ECT@ECT, David Forster/Corp/Enron@Enron, Bruce Garner/Corp/Enron@ENRON Subject: 'Sleeving Agreement' main concerns Hi Guys Please see below (and in Lara's email) some of the issues we thought needed to be addressed in the "back to back" agreement between Enron and MG. Possibility of indemnity from MG re counterparty credit risk being held by Enron (in the event that no compensation is payable)? Please notify Edmund if there are any other issues which need to be covered in this document. Regards Amita ---------------------- Forwarded by Amita Gosalia/LON/ECT on 12/06/2000 21:32 --------------------------- From: Lara Fields on 09/06/2000 17:51 To: Janine Juggins/LON/ECT@ECT cc: Amita Gosalia/LON/ECT@ECT Subject: 'Sleeving Agreement' main concerns Hi Janine, As discussed here is our list of topics we feel the 'Sleeving' Agreement should cover. We think that it should remain as broad as possible to avoid a delay in Legal negotiations over the finer details. Please let us know your thoughts and we will send these up to Justin. If you could please review this as soon as possible, we would appreciate it as Justin is out of the office next week. Confidentiality - covering all EnronOnline applications and trading strategies Performance of obligation to deliver / receive product Invoices and Confirmations - confirmations for EOL deals should be processed by MG staff and sent out with proper Enron entity, also send confirms to Enron Assumption of underlying position by MG - Enron fully transfers positions to MG Provision of data feeds - i.e. information to the Credit Aggregation System and/or to the RAC value at risk system Information provision- for Management Reporting purposes Compensation for Credit risk taken? - please advise if you feel this is necessary. Thank you! Lara
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