Using your numbers:
1.  No.  We won't do that until we think we have to.
2.  Not entirely, they have to meet certain more restrictive tests depending 
on how they are organized (i.e. how sophisticated are the investors).  A fund 
group like Fidelity that allows my Mom to invest has to have $1,000,000,000 
in assets.  A true hedge fund that limits its investors to those meeting 
certain sophistication requirements only needs $100,000,000 in total assets.
3. Yes
4. Only if we become "regulated."  Currently we still maintain that we are a 
one-to-many site and are not yet subject to these rules. 



	David Forster/ENRON@enronXgate
	04/27/2001 05:18 PM
		 
		 To: Mark Taylor/HOU/ECT@ECT
		 cc: Andy Zipper/ENRON@enronXgate
		 Subject: RE: Electronic Trading Facilities for Transaction in Exempt 
Commodities

OK - so based on this document:

1) Are we registered with the CFTC?
2) Are we prohibited from transacting with hedge funds ("investment company")?
3) Are the "exemption conditions" with which the facility must comply just 
the conditions listed in the document?
4) Could you clarify: Do the conditions described in the document apply to us 
now, or only if we become "regulated"?


As per our conversation, I understand that FX is subject to even less 
stringent requirements than our current commodities are. 

Thanks,

Dave


 -----Original Message-----
From:  Taylor, Mark  
Sent: Friday, April 27, 2001 3:32 PM
To: Forster, David; Zipper, Andy
Cc: Greenberg, Mark
Subject: Electronic Trading Facilities for Transaction in Exempt Commodities

Attached is a brief outline of the requirements for electronic trading 
facilities for transactions in exempt commodities.  Exempt commodities are 
all commodities other than financial commodities (e.g. interest rates, 
currencies, securities) and agricultural commodities.

 << File: Electronic Trading Facility for Exempt Commodities.doc >>