Greg:

2 Issues - an easy language issue and a more complicated regulatory issue.

First the easy one.

It seems to me that since the weekend language says to use the preceding 
business day that these two sentences will always result in the preceding 
business day's price being used, regardless of whether the holiday is a 
Monday or a Friday:

If a statutory holiday falls on a Monday or a Friday, the Enron Daily Index 
for such day shall be the Enron Daily Index for the weekend occurring closest 
to such day.  If a statutory holiday falls on a Tuesday, Wednesday or 
Thursday, the Enron Daily Index for such day shall be the Enron Daily Index 
for the previous business day.

If that's what's intended, I don't think we need these lines (it's all 
covered int he prior parenthetical).  If we mean something else I don't think 
this language works.

Otherwise the language all looked fine.  

The harder issue is the US regulatory one.  The CFTC gives a higher level of 
scrutiny to electronic systems that provide not only trading but also price 
discovery.   That's why we don't refer to the EnronOnline prices reported on 
the system as "indices" but just average prices.  We may be OK here since 
this is a Canadian price (although its availability to US cutomers my sink 
us) and it is only for trades where Enron is a party.  I've got a call in to 
our CFTC counsel asking for thier take on this and will let you know as soon 
as I hear back (he's pretty quick at responding so I expect it should be this 
afternoon).

Mark
----- Forwarded by Mark Taylor/HOU/ECT on 02/14/2001 10:24 AM -----

	Dianne Seib
	02/13/2001 11:44 AM
		 
		 To: Mark Taylor/HOU/ECT@ECT
		 cc: Greg Johnston/CAL/ECT@ECT
		 Subject: New Canadian EOL Product

Mark,

At Greg Johnston's request, I am forwarding to you copies of two proposed EOL 
products the Canada office would like to set up for trading on EnronOnline.  
Both products are financial and are using the EnronOnline derived daily index 
price.  Please let Greg know if these products are approved for trading.  In 
the meantime, I have forwarded copies to the EOL team in order that they can 
start working on setting the product up for trading.

Thanks!

Dianne