var for metals it is my preference to have an aggregated var methodology for the metals
business as soon as possible ( version la ) . i do not want to poison progress
with my opiniion , but i think that the critical first step is to find a way
to aggregate positions in coarse buckets , perhaps sacrificing precision for
speed , based on " rules " that oerations can deliver , research can stand behind
and commercial will accept . , and using an equally coarse var calculation
( the equivalent of ad - hoc var ? ) that can be delivered to the " official books
and records " on a daily basis . this i believe would be acceptable for a 2 - 3
month time frame ( at which time we get versionlb ) as opposed to waiting 2 - 3
months to implement a better process and have nothing in the interim .
ultimately , i would look for version 2 a to be delivered and very defendable
by 1 / 1 / 01 . this will require indulgence and compromise on all fronts but i
cannot conceive of a better way . please let me know if this is consistent
with your understanding . a critical point from my perspective is that the mg
commercial team and metal operations staff understand their role in making
this happen and willingness to accept the consequences . i look for you to
take the lead as leader of the integration to do so . if you need any input
from the rest of us to underscore the importance please let us know . as i
alluded to on the phone , the people in houston that have been involved in the
var process have been through an extraordinary period of detailed scrutiny of
var by commercial and have been hindered by the lack of basic understanding
by all parties as their responsibilities . given the distance and the newness
of the metals personell , i fear that this could set us all up for some
surprises and some very uncomfortable communication , much of which is not
entirely necessary .
thanks
ted
eric gadd
07 / 21 / 2000 11 : 46 am
to : ted murphy / hou / ect @ ect , bjorn hagelmann / hou / ect @ ect
cc : richard sage / lon / ect @ ect
subject : attached fax
ted and bjorn -
we plan to release draft recommendations on metal position limits by close of
business on 24 july and have asked vince to prepare a v @ r computational
methodology prior to the 7 / 8 aug bod meeting .
var for metals
it is my preference to have an aggregated var methodology for the metals
business as soon as possible ( version la ) . i do not want to poison progress
with my opiniion , but i think that the critical first step is to find a way
to aggregate positions in coarse buckets , perhaps sacrificing precision for
speed , based on " rules " that oerations can deliver , research can stand behind
and commercial will accept . , and using an equally coarse var calculation
( the equivalent of ad - hoc var ? ) that can be delivered to the " official books
and records " on a daily basis . this i believe would be acceptable for a 2 - 3
month time frame ( at which time we get versionlb ) as opposed to waiting 2 - 3
months to implement a better process and have nothing in the interim .
ultimately , i would look for version 2 a to be delivered and very defendable
by 1 / 1 / 01 . this will require indulgence and compromise on all fronts but i
cannot conceive of a better way . please let me know if this is consistent
with your understanding . a critical point from my perspective is that the mg
commercial team and metal operations staff understand their role in making
this happen and willingness to accept the consequences . i look for you to
take the lead as leader of the integration to do so . if you need any input
from the rest of us to underscore the importance please let us know . as i
alluded to on the phone , the people in houston that have been involved in the
var process have been through an extraordinary period of detailed scrutiny of
var by commercial and have been hindered by the lack of basic understanding
by all parties as their responsibilities . given the distance and the newness
of the metals personell , i fear that this could set us all up for some
surprises and some very uncomfortable communication , much of which is not
entirely necessary .
thanks
ted
eric gadd
07 / 21 / 2000 11 : 46 am
to : ted murphy / hou / ect @ ect , bjorn hagelmann / hou / ect @ ect
cc : richard sage / lon / ect @ ect
subject : attached fax
ted and bjorn -
we plan to release draft recommendations on metal position limits by close of
business on 24 july and have asked vince to prepare a v @ r computational
methodology prior to the 7 / 8 aug bod meeting .