I think we should get either you or Sara involved in this.  Gary has 
requested a Houston lawyer help in establishing the business in London.  Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 06/30/2000 09:37 AM -----

	Paul Simons
	06/27/2000 07:23 AM
		 
		 To: Gary Hickerson/HOU/ECT@ECT
		 cc: Andrew Cornfield/LON/ECT@ECT, John Sherriff/LON/ECT@ECT, (bcc: Mark E 
Haedicke/HOU/ECT)
		 Subject: Bond and Equity Trading in Europe

Gary

There follows a summary of the key information required in order to be able 
to estimate, under SFA capital rules, the likely regulatory capital 
requirements of the proposed bond and equity trading businesses in London.  
The summary has been prepared by Andy Cornfield who is our resident expert on 
the SFA's capital rules.

As previously discussed, EEFT - our SFA regulated agent through which we 
currently propose to run this business - is subject only to very modest 
regulatory capital rules since it does not take any principal positions.  Our 
view, however, is that a bond and equity trading desk of the type discussed 
will (sooner or later) become subject to SFA capital requirements and so it 
makes sense now to estimate the likely extent of that capital.

It would be very helpful at this stage if you (or someone in your group) 
could provide a guestimate (based on the US model, but modified where you 
think the European positions might be different) of the likely volumes and 
constituent parts of these businesses:

after 12 months of trading 
after 24 months of trading
after 36 months of trading

Please contact Andy or myself if you would like to discuss this. I look 
forward to hearing from you.

Best regards

Paul


---------------------- Forwarded by Paul Simons/LON/ECT on 27/06/2000 11:22 
---------------------------

Andrew Cornfield
23/06/2000 14:20


To: Paul Simons/LON/ECT@ECT
cc:  

Subject: Info for Gary Hickerson

Paul

As requested. Please call to discuss.



Regards
Andy