Ketan,
I do not know who Mike spoke to at Morgan Stanley.  Do you agree that this is 
a statement that Morgan, Stanley would make?  Would you please run the traps 
at Morgan to confirm but do not provide any info to Trading Edge until 
confirmed by me after I have received notification from Enron Legal that they 
are okay with this approach.  Ketan, Mike Fowler will send you, Sara and I 
the name of whom he spoke with. 
Thanks. Sheila

Sara,
What do you think?  


---------------------- Forwarded by Sheila Glover/HOU/ECT on 11/17/2000 05:26 
PM ---------------------------


Mike Fowler@ENRON
11/17/2000 05:07 PM
To: Sheila Glover/HOU/ECT@ECT
cc: Paul Pizzolato/HOU/ECT@ECT 
Subject: Trading Edge

As you are aware, Jeff Kinneman would like to establish agreements for ENA 
and ECT Investments to begin online bond trading with Buy Side Direct and 
Trading Edge.  Given that we will not provide 1) financial statements for ENA 
and ECT Investments, or 2) a guarantee from Enron Corp., Trading Edge has 
requested information from our prime broker Morgan Stanley in order to 
determine a limit for our Trading Edge activity.  

We intend to ask Trading Edge to establish a $25 million daily trading limit 
for our activity. Based on a discussion with Trading Edge, it appears that 
they would accept a qualitative statement from Morgan Stanley that this is 
not excessive based on our relationship with Morgan Stanley.  Our account rep 
informed me that Enron has approximately $400 million of equity under 
management with Morgan Stanley.  Jeff prefers not to provide specific trading 
statistics to Trading Edge, but would be comfortable with having Morgan 
Stanley state that our holdings are well in excess of the proposed daily 
trading limit.  In addition, Morgan Stanley referred to a letter of good 
standing that they could provide on our behalf to Trading Edge.  

Our Morgan Stanley rep wanted to ensure that any request for information be 
approved by your area.  Who from your area should I work with on this matter ?

Please let me know if you would like to discuss.  Thanks.

Mike
x39990