Thanks for the feedback.  I think this is right in line with CRM's proposal 
and will definitely meet our objective to control credit risks with higher 
risk counterparties.  It is an excellent Phase 1 solution which we certainly 
can try to address more systematically in future developments.

We have done some initial review of the current deal flow in Houston and 
London and don't expect this language to impact a high percentage of 
transactions.   Based on our review of recently executed Enron transactions 
we expect about 80% of total transactions will not be impacted by this 
language.  Most of our deal flow is with highly rated counterparties.  
However, as we build the Online Trading volume with more customers, we expect 
the majority of our customers will require this GTC language.

Bill







Justin Boyd
07/21/99 12:56 PM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT, Scott Sefton/LON/ECT@ECT, Louise 
Kitchen/LON/ECT@ECT, William S Bradford/HOU/ECT@ECT, David 
Weekes/LON/ECT@ECT, David Hardy/LON/ECT@ECT, 
andrew.wilkinson@cliffordchance.com, Edmund Cooper/LON/ECT@ECT
cc:  
Subject: Proposed revised collateral clause for Online GTCs

Following my earlier conversation with Mark Taylor I have revised the text, 
as attached.  This limits the form of collateral to letters of credit.

Comments/questions.........

Thanks

Justin
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