Message-ID: <4860238.1072139641502.JavaMail.evans@thyme>
Date: Wed, 26 May 1999 10:52:00 -0700 (PDT)
From: david.mally@enron.com
To: scott.mills@enron.com, mark.taylor@enron.com
Subject: Re: OnLine Upate
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Number 2
---------------------- Forwarded by <true_name> David G Mally </true_name> /HOU/ECT on 05/26/99 05:51=
=20
PM ---------------------------


<true_name> Louise Kitchen
 </true_name> 05/19/99 12:51 PM
To: <true_name> Dave Mally </true_name> /HOU/ECT, <true_name> Kevin Sweeney </true_name> /HOU/ECT
cc: =20
Subject: Re: OnLine Upate


---------------------- Forwarded by <true_name> Louise Kitchen </true_name> /LON/ECT on 05/19/99 10:2=
4=20
AM ---------------------------


<true_name> Louise Kitchen
 </true_name> 05/13/99 11:24 PM
To: <true_name> Louise Kitchen </true_name> /LON/ECT@ECT
cc: =20
Subject: Re: OnLine Upate =20





<true_name> Louise Kitchen
 </true_name> 05/13/99 11:19 PM
To: <true_name> John Sherriff </true_name> /LON/ECT@ECT, <true_name> Greg Whalley </true_name> /HOU/ECT@ECT, <true_name> Philippe  </true_name> A=20
<true_name> Bibi </true_name> /HOU/ECT@ECT
cc: =20
Subject: OnLine Upate

Executive Summary

The work on the scoping of the project has been completed and a consultancy=
=20
firm should be chosen on Monday, the plan is to have 2 companies to negotia=
te=20
full terms with.  A timetable should be available mid next week for the=20
system requirements.   The terms of the contract to be concentrated on are=
=20
the delivery premiums and penalties.

The legal and regulatory side is fully underway on both sides of the=20
atlantic. =20

Work on the business process side of the site is under way, this includes t=
he=20
integration of internet trading within the company and the management of th=
e=20
side (including the administration, product management etc ) has commenced=
=20
and an intial group has been put together to work on this, with the aim of=
=20
creating a base plan which will be rolled out in Europe and used as a base =
to=20
set up activities in the US.

Initial schedule for next meeting - 2nd or 3rd June.

1. Systems & outsourcing=20

Several firms have been interviewed for the outsourcing of the project.  Th=
e=20
shortlist includes several firms, at the time of writing those at the top=
=20
include Agency, I-cube and US Web.  A summary of the outsourcing companies =
is=20
attached.   Bearing in mind no further companies are introduced a decision=
=20
may be possible immediately upon the quotation from Agency.



The contract with the company will be negotiated immediately emphasizing=20
premiums for delivery and penalties for late delivery.

The powerpoint presentation used in the consultancy hiring process is=20
attached for information.




2.  Systems Documentation

The initial specifications have been written to outline the scope of the=20
project with a view to hiring the appropriate company and ensuring the=20
internal processes are commenced.



3.  Legal Review=20

Two legal firms have now been instructed with regard to the project.

Europe - Clifford Chance are acting as Project Manager for Europe.=20
<true_name> Clifford Chance  </true_name> have been instructed on the following areas:
(i) Advice on overall website structure (text, context, content etc)=20
(ii) preparation of the initial customer documentation / registration=20
documentation
(iii) specific internet trading advice for all jurisdictions
(iv) co-ordinating advice of those firms utilised across all juridictions b=
y=20
Enron on the physical and financial trading (to include Enron's financial=
=20
regulatory advisors Slaughter & May)
(v)  co-ordinate with US legal counsel on cross jurisdictional issues (such=
=20
as use of US companies as Enron counterparty in the European markets).
Initial meetings held with Enron commercial, legal and support teams.

US - Sullivan & Cromwell have been instructed to advise for the US market=
=20
primarily because of their CFTC experience.  Initial briefing meeting on th=
e=20
project was held on 7th May 1999 and a follow up meeting on their initial=
=20
findings of the structure is to be held on the 17th May 1999.  Sullivan &=
=20
Cromwell have been instructed to review the proposed structure of the site=
=20
and outline all the legal and regulatory issues surrounding the transaction=
al=20
nature of the site.
Sullivan & Cromwell shall  be reviewing the initial enabling documentation =
as=20
produced by <true_name> Clifford Chance </true_name> .

4.  Business Process

The first draft of the requirements for the business process requirements f=
or=20
the project has been completed.   This document will form the basis of the=
=20
programme to ensure integration of online trading within the organisation. =
=20
<true_name> David Port  </true_name> will be leading this effort and <true_name> Dave Malley  </true_name> is a possibility for=
=20
the US - any thoughts?

The key areas that require defining of Business Processes are:
1.  Customer registration =20
2. Authorisation of new traders within Enron=20
3. Setting up new products and control over existing products
4. Transaction execution online
5. Online transaction validation -  the main business processes include=20
credit and market or position limit check.
6. Interface between online system and Gas, Power and Global Liquids books,=
=20
i.e. automatic deal data transfer from Enron=20
7. Online Database into appropriate book after deal was validated online.
8. Transaction confirmation and processing by middle office/back=20
office/documentation departments. This should cover any deviations in the=
=20
business processes for trades done online versus OTC trades.
9. Process of disputes handling. This process will cover disputes on whethe=
r=20
the deal is done or not as well as disagreements over particular commercial=
=20
terms of a done deal.
10. Documentation and Contracts
11. Master Agreements and GTCs have to be put in place for all anticipated=
=20
types of transactions, commodities and countries.
12. All documents need to be translated into appropriate foreign languages.
13. Viewing by users of their own account status =01) the system should all=
ow to=20
reconcile data in the Enron Online database against information in the book=
s.
14. Online news publishing (System news,Trading groups new, General energy=
=20
related news, Online trading help)




5.  Project Staffing

Commercial   =20
<true_name> Paul Goddard  </true_name> - interface with IT team, <true_name> Paul  </true_name> will be working closely with th=
e=20
IT team on the structure and content of the page.
<true_name> Elena Kapralova  </true_name> - <true_name> Elena  </true_name> will be responsible for the start up of the Busines=
s=20
Process part of the project and will be the co-ordinator on the european si=
de=20
for the actual form and content of the product lines.
<true_name> Arfan Aziz  </true_name> - documentation co-ordination with responsbility for creating a=
=20
database of counterparties for the production of registration documents for=
=20
Europe.

Supporting the project - Europe=20
Business Process <true_name> David Port
 </true_name> Tax   <true_name> Janine Juggins
 </true_name> Credit/Risk Control <true_name> Bryan Seyfried
 </true_name> Legal    <true_name> Justin Boyd

 </true_name> Potential support from US includes <true_name> Dave Mally

 </true_name> IT Team     <true_name> Jay Webb  </true_name> - Project Manager
     <true_name> Tiluk Mandadi
      </true_name> <true_name> Bob Campbell  </true_name> (transferring to Houston from UK for 3 months)
     <true_name> Neil Donkin  </true_name> (subject to final confirmation)
     <true_name> Pat Gogerty  </true_name> and <true_name> Chris Dodds  </true_name> for initial period of 3 weeks (from UK)
     plus 2 other US employees.=20
    =20
6.  Meetings next week

<true_name> Louise  </true_name> (New York on Monday, Tuesday onwards in Houston)
Sullivan & Cromwell - <true_name> Mark Taylor </true_name> =20
<true_name> Mark Palmer  </true_name> (introductory meeting)=20
<true_name> Janine Juggins  </true_name> - Tax=20
<true_name> Dave Mally  </true_name> - Support
<true_name> Ted Murphy  </true_name> - Risk Control
<true_name> Greg  </true_name> on staffing and Australia

<true_name> Paul Goddard  </true_name> will be spending the week with the IT team in Houston to assis=
t=20
particularly on the contracting process.

Business Process meetings to continue in London with mock up completed by I=
T=20
mid week.

<true_name> Louise






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