re : metals brenda
it strikes me that the planning documentation could be enormously useful to
us in backtesting our existing processes and determining any potential
overlaps
is there any obstacle to access to this information ?
enron capital & trade resources corp .
from : brenda f herod 23 / 01 / 2001 23 : 40
to : andrew cornfield / lon / ect @ ect
cc : mike jordan / lon / ect @ ect , paul wallace / lon / ect @ ect , john
jacobsen / hou / ect @ ect , roy lipsett / hou / ect @ ect , michael e moscoso / hou / ect @ ect ,
kristen j hanson / hou / ect @ ect , yvette g connevey / corp / enron @ enron , jill
lafave / enron @ enronxgate , delmar davis / enron @ enronxgate , daniel
hamilton / enron @ enronxgate
subject : re : metals
andy ,
thanks so much for your message . i had you on my " to do " list today to
follow - up from our conversation last week . i appreciate your responses , and
will follow - up as needed .
just to recap eim ' s current inititives .
 ( pwc ) was engaged in 10 / 00 to develop a business plan
for tactical and strategic solutions for the projected growth in the physical
business . in 11 / 00 , aa was engaged to develop a " blueprint " of eim major
processes ( deal execution , deal capture , risk management , logistics ,
settlements and financial reporting ) , down to level 2 processes . the
initiatives have been combined into one team focused on delivering the
" blueprint " , a gap analysis of enron systems to business needs and
recommended systems . a complete " roadmap " should be laid out with a
0 - 3 months , 4 - 6 months , 7 - 9 months and 10 - 12 months timeline . the plan
addresses tactical also .
our overall objective : build an infrastructure ( people , processes and
systems ) that is scalable and supports the trading business of eim . the
current industries are forest products and steel . however , additional
industries may be added . the targeted infrastructure would require little
change to support new industries .
the delieverable is expected by the end of 2 / 01 . we ' d be happy to visit with
you all ( video conference or houston , . . . . ) to give you more information . let
me know how to proceed .
thanks again for your time . since i wasn ' t able to attend the controllers '
conference last 10 / 00 , i ' m glad i got to meet you last week . stay in touch .
brenda
to : brenda f herod / hou / ect @ ect
cc : mike jordan / lon / ect @ ect , paul wallace / lon / ect @ ect
subject : metals
brenda
as discussed at our meeting last week there are a few areas of commonality
between enron metals and eim that should allow leverage off common goals .
in particular i promised info on a few areas :
project q assessment
a lot of the issues raised in the report are particular to enron metals
( being to do with interfaces with our as 400 ysstem ) however high level issues
which formed part of the decision to not develop this for enron metals were :
q is over specified for metals . traffic / logistics for metals is less
complex than oil & coal .
metals process tends towards buy > store > sell whereas for liquids the storage
is not as prevelant
metals logistics typically involves trucks whereas liquids is ship / barge
2 . inventory controls
again the reports produced here have been very specific to enron metals . paul
wallace a manager in the co - ordination function is working extensively on
developing the controls in this area . i would suggest that you contact paul
directly if you wish to discuss specific areas or inventory controls in
general .
3 . funding of inventory
we have a structured finance facility here in london . the deal is specific to
enron metals markets in that it works by reference to lme prices as these are
the base index for all the positions placed in the facility . if structured
financing is sort for eim then it would be appropriate to talk to either
david tregar ( metals commercial ) or bill appleby ( global finance ) as an intro
to the issues faced .
4 . curve management process
the markets in which our merchanting division trades are based on the lme
curves but are linked to a large number of basis curves for quality and
location . given the vast number we have opted to break down the markets by
brand group and port location . e . g . for copper this means we have a grid with
5 brand groups and 3 sets of port groups ( 13 for europe , 7 for the us and 6
for the far east ) . the maintaince & price testing of the grids is made
manageable by the fact the premiums only need be entered for brand and port
groups by the traders yet prices can be tested by reference to node points
i . e . price of specific brand at a given location which can be checked to a
market quote .
5 . re recruitment of paper traders
i haven ' t been able to contact him but i recall that the brother of david
rosenblum , one of the metals traders in chicago , is a trader of recylced
paper .
i ' ll keep you posted on long term system development plans here in london .
i ' d appreciate same for eim .
regards
andy
re : metals
brenda
it strikes me that the planning documentation could be enormously useful to
us in backtesting our existing processes and determining any potential
overlaps
is there any obstacle to access to this information ?
enron capital & trade resources corp .
from : brenda f herod 23 / 01 / 2001 23 : 40
to : andrew cornfield / lon / ect @ ect
cc : mike jordan / lon / ect @ ect , paul wallace / lon / ect @ ect , john
jacobsen / hou / ect @ ect , roy lipsett / hou / ect @ ect , michael e moscoso / hou / ect @ ect ,
kristen j hanson / hou / ect @ ect , yvette g connevey / corp / enron @ enron , jill
lafave / enron @ enronxgate , delmar davis / enron @ enronxgate , daniel
hamilton / enron @ enronxgate
subject : re : metals
andy ,
thanks so much for your message . i had you on my " to do " list today to
follow - up from our conversation last week . i appreciate your responses , and
will follow - up as needed .
just to recap eim ' s current inititives .
 ( pwc ) was engaged in 10 / 00 to develop a business plan
for tactical and strategic solutions for the projected growth in the physical
business . in 11 / 00 , aa was engaged to develop a " blueprint " of eim major
processes ( deal execution , deal capture , risk management , logistics ,
settlements and financial reporting ) , down to level 2 processes . the
initiatives have been combined into one team focused on delivering the
" blueprint " , a gap analysis of enron systems to business needs and
recommended systems . a complete " roadmap " should be laid out with a
0 - 3 months , 4 - 6 months , 7 - 9 months and 10 - 12 months timeline . the plan
addresses tactical also .
our overall objective : build an infrastructure ( people , processes and
systems ) that is scalable and supports the trading business of eim . the
current industries are forest products and steel . however , additional
industries may be added . the targeted infrastructure would require little
change to support new industries .
the delieverable is expected by the end of 2 / 01 . we ' d be happy to visit with
you all ( video conference or houston , . . . . ) to give you more information . let
me know how to proceed .
thanks again for your time . since i wasn ' t able to attend the controllers '
conference last 10 / 00 , i ' m glad i got to meet you last week . stay in touch .
brenda
to : brenda f herod / hou / ect @ ect
cc : mike jordan / lon / ect @ ect , paul wallace / lon / ect @ ect
subject : metals
brenda
as discussed at our meeting last week there are a few areas of commonality
between enron metals and eim that should allow leverage off common goals .
in particular i promised info on a few areas :
project q assessment
a lot of the issues raised in the report are particular to enron metals
( being to do with interfaces with our as 400 ysstem ) however high level issues
which formed part of the decision to not develop this for enron metals were :
q is over specified for metals . traffic / logistics for metals is less
complex than oil & coal .
metals process tends towards buy > store > sell whereas for liquids the storage
is not as prevelant
metals logistics typically involves trucks whereas liquids is ship / barge
2 . inventory controls
again the reports produced here have been very specific to enron metals . paul
wallace a manager in the co - ordination function is working extensively on
developing the controls in this area . i would suggest that you contact paul
directly if you wish to discuss specific areas or inventory controls in
general .
3 . funding of inventory
we have a structured finance facility here in london . the deal is specific to
enron metals markets in that it works by reference to lme prices as these are
the base index for all the positions placed in the facility . if structured
financing is sort for eim then it would be appropriate to talk to either
david tregar ( metals commercial ) or bill appleby ( global finance ) as an intro
to the issues faced .
4 . curve management process
the markets in which our merchanting division trades are based on the lme
curves but are linked to a large number of basis curves for quality and
location . given the vast number we have opted to break down the markets by
brand group and port location . e . g . for copper this means we have a grid with
5 brand groups and 3 sets of port groups ( 13 for europe , 7 for the us and 6
for the far east ) . the maintaince & price testing of the grids is made
manageable by the fact the premiums only need be entered for brand and port
groups by the traders yet prices can be tested by reference to node points
i . e . price of specific brand at a given location which can be checked to a
market quote .
5 . re recruitment of paper traders
i haven ' t been able to contact him but i recall that the brother of david
rosenblum , one of the metals traders in chicago , is a trader of recylced
paper .
i ' ll keep you posted on long term system development plans here in london .
i ' d appreciate same for eim .
regards
andy