One of the problems with Indian derivatives is that when foreign exchange is 
involved, Reserve Bank of India approval is required in advance of the 
transaction.  A $US deal would involve foreign exchange from an Indian 
counterparty's point of view.  Certain transactions have pre-approved status 
but an ECT commodity swap is not one of them.  I'm still trying to track down 
whether a commodity deal can be done at all, even with RBI approval.   I've 
also asked whether, if approved commodity swaps are permitted but not by ECT, 
it might  be possible to use an Indian bank or other approved dealer as an 
intermediary. 




Marc De La Roche
02/16/99 10:52 AM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc: Doug Leach/HOU/ECT@ECT 
Subject: Re: Naphtha Hedge  

Mark,

Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the 
naphtha supply contract between DPC and Glencore is in $US/MT, I think it 
would probably be best to use $US as the currency for the proposed DPC hedge. 
The standby L/C that we wouyld require DPC to post in ECT's favor would also 
be denominated in $US.

Marc


To: Marc De La Roche/HOU/ECT@ECT
cc:  
Subject: Re: Naphtha Hedge  

Marc:

In what currency will the proposed DPC hedge be denominated?