enron japan commercial support model sally
i just want to summarize / clarify our discussions so far on the commercial
support model for enron japan .
my background :
in europe the commercial support function was divided into a middle office
( mo ) and a back office ( bo ) part , with a european controller ( fearnley dyson )
responsible for both functions . for scandinavia , the only trading office in
europe outside of london , i was responsible for both functions , as local
office controller , reporting into barry pearce , who reported to fearnley . in
japan i also have this local office controller function , as being responsible
for mo / bo activities in this region . the mo would consist of the trading
related functions : documentation ( capture & confirmation ) , risk management ,
settlement and trade accounting . the bo would consist of g & a ' s , salaries &
wages , tax , management reporting , statutory reporting and vat .
back office :
i report directly to cassandra scultz ( vp & cao of enron apachi ) . as much as
possible are to be outsourced to our sydney office ( heidi mason , who also
reports to cassandra ) , but some work has to be done in tokyo . the reasons for
this outsourcing decision is enclosed in the power point presentation
enclosed below . for payments we use houston treasury , as they are the only
ones that can exercise a payment in the banking systems .
middle office :
mandate
what i have in writing is a section from joe hirl ' s memo ( request for japan
power trading positions ( draft ) ) to rick buy and greg whalley dated april 19
this year ( please find enclosed )
back office operations : jan erland bekeng in cooperation with sally beck
will look to establish the local risk books in tokyo and define any
system modifications necessary given the characteristics of the japanese
electricity market . enron japan will handle trade capture and risk
management while confirmations and settlements will occur in houston under
sally beck  , s supervision . it support and system modification will be
overseen by anthony dayao and performed in houston .
discussion - current & future situation
i see more commodities than power . metals will arrive september 25 , weather
is on the way from sydney , and garry hickerson will from september 1 have a
guy here doing irfx , agri and maybe equity . we are also looking into oil
deals , and have plans for gas , coal , pulp & paper , credit and emissions . also
ebs is on the way . i only see metals , irfx and weather as active desks this
year , maybe oil . power will take some more time to get active , due to the
very closed market situation here right now . on the origination side we might
see some structures / cross commidity / finance deals go through . thus we have a
mix of activites from enron apachi , enron global markets , ebs and enron
metals . basically everyone wants to do some business in japan .
to coordinate all these activities we need to build the most cost efficient ,
independent , segregated , automised and service minded japanese commercial
support function possible . to accomplish these objectives , outsourcing to
sydney is an alternative that has been discussed extensive lately , and is
highly recommended from our side . labour costs in sydney is 25 % of the costs
in tokyo . due to sydney ' s experience and size they are ready to expand and
take on this project . they already have the segregation and independence in
place , and would give us an extra layer of segregation in the sense of being
an intermideary between tokyo and houston . bilingual staff would be hired to
perform japanese services , which is widely available in sydney . and there is
only one hour in difference between us . outsourcing these activities from
japan to australia is a growing trend , and many large corporations have done
it this way .
there will be some time from the first trades until functions and commodities
are moved to sydney . tokyo want and needs to learn , understand all details ,
automise , make routines and calibrate systems first . on the confirmation side
our legal department would be heavily involved in th start , compared to later
stages .
proposed mo structure for enron japan
a ) responsibility for all commercial support activities in japan to be
sourced to enron japan , under enron japan ' s cfo .
b ) outsource programmable tasks to sydney :
- documentation ( capture & confirmation )
- settlement
- trade accounting
c ) risk management in tokyo .
i look forward to hear from you .
regards
jan - erland
enron japan commercial support model
sally
i just want to summarize / clarify our discussions so far on the commercial
support model for enron japan .
my background :
in europe the commercial support function was divided into a middle office
( mo ) and a back office ( bo ) part , with a european controller ( fearnley dyson )
responsible for both functions . for scandinavia , the only trading office in
europe outside of london , i was responsible for both functions , as local
office controller , reporting into barry pearce , who reported to fearnley . in
japan i also have this local office controller function , as being responsible
for mo / bo activities in this region . the mo would consist of the trading
related functions : documentation ( capture & confirmation ) , risk management ,
settlement and trade accounting . the bo would consist of g & a ' s , salaries &
wages , tax , management reporting , statutory reporting and vat .
back office :
i report directly to cassandra scultz ( vp & cao of enron apachi ) . as much as
possible are to be outsourced to our sydney office ( heidi mason , who also
reports to cassandra ) , but some work has to be done in tokyo . the reasons for
this outsourcing decision is enclosed in the power point presentation
enclosed below . for payments we use houston treasury , as they are the only
ones that can exercise a payment in the banking systems .
middle office :
mandate
what i have in writing is a section from joe hirl ' s memo ( request for japan
power trading positions ( draft ) ) to rick buy and greg whalley dated april 19
this year ( please find enclosed )
back office operations : jan erland bekeng in cooperation with sally beck
will look to establish the local risk books in tokyo and define any
system modifications necessary given the characteristics of the japanese
electricity market . enron japan will handle trade capture and risk
management while confirmations and settlements will occur in houston under
sally beck  , s supervision . it support and system modification will be
overseen by anthony dayao and performed in houston .
discussion - current & future situation
i see more commodities than power . metals will arrive september 25 , weather
is on the way from sydney , and garry hickerson will from september 1 have a
guy here doing irfx , agri and maybe equity . we are also looking into oil
deals , and have plans for gas , coal , pulp & paper , credit and emissions . also
ebs is on the way . i only see metals , irfx and weather as active desks this
year , maybe oil . power will take some more time to get active , due to the
very closed market situation here right now . on the origination side we might
see some structures / cross commidity / finance deals go through . thus we have a
mix of activites from enron apachi , enron global markets , ebs and enron
metals . basically everyone wants to do some business in japan .
to coordinate all these activities we need to build the most cost efficient ,
independent , segregated , automised and service minded japanese commercial
support function possible . to accomplish these objectives , outsourcing to
sydney is an alternative that has been discussed extensive lately , and is
highly recommended from our side . labour costs in sydney is 25 % of the costs
in tokyo . due to sydney ' s experience and size they are ready to expand and
take on this project . they already have the segregation and independence in
place , and would give us an extra layer of segregation in the sense of being
an intermideary between tokyo and houston . bilingual staff would be hired to
perform japanese services , which is widely available in sydney . and there is
only one hour in difference between us . outsourcing these activities from
japan to australia is a growing trend , and many large corporations have done
it this way .
there will be some time from the first trades until functions and commodities
are moved to sydney . tokyo want and needs to learn , understand all details ,
automise , make routines and calibrate systems first . on the confirmation side
our legal department would be heavily involved in th start , compared to later
stages .
proposed mo structure for enron japan
a ) responsibility for all commercial support activities in japan to be
sourced to enron japan , under enron japan ' s cfo .
b ) outsource programmable tasks to sydney :
- documentation ( capture & confirmation )
- settlement
- trade accounting
c ) risk management in tokyo .
i look forward to hear from you .
regards
jan - erland