----- Forwarded by Mark Taylor/HOU/ECT on 02/08/2001 02:35 PM -----

	Louise Kitchen
	02/08/2001 02:28 PM
		 
		 To: Mark Taylor/HOU/ECT@ECT
		 cc: 
		 Subject: USA: INTERVIEW-Online exchange TradeSpark says building critical 
mass.

Please look at the Tradespark agreement 
---------------------- Forwarded by Louise Kitchen/HOU/ECT on 02/08/2001 
02:32 PM ---------------------------
From: Rahil Jafry on 02/08/2001 02:18 PM
To: Andy Zipper/Enron@EnronXGate, Louise Kitchen/HOU/ECT@ECT, Dave 
Samuels/Enron@EnronXGate, David.Forster@enron.com, Bob Shults/HOU/ECT@ECT, 
Paul Goddard/EU/Enron@Enron, Sheri Thomas/HOU/ECT@ECT, Leonardo 
Pacheco/Corp/Enron@Enron
cc:  

Subject: USA: INTERVIEW-Online exchange TradeSpark says building critical 
mass.

FYI + some benchmark numbers from them for future use.  Also, are they 
allowed to advertise the names of all their members?


----- Forwarded by Rahil Jafry/HOU/ECT on 02/08/2001 02:19 PM -----

USA:
INTERVIEW-Online exchange TradeSpark says building critical mass.
By Andrew Kelly

02/08/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Feb 8 (Reuters) - TradeSpark, an online energy exchange launched late
last year, said on Thursday it was making good progress toward its goal of
establishing itself as a liquid marketplace for trading energy products.

"We expect certainly by the end of this year to have critical mass in certain
instruments, in certain products, and to be the (trading) platform of record,"
Managing Director Mike Williams told Reuters in a telephone interview.
Earlier on Thursday, TradeSpark (www.tradespark.com) said it had clocked up
energy trades with a notional value of more than $16 billion since it opened
for trading on Oct 2, 2000.

Natural gas accounted for over $9 billion of the trades logged so far and
electricity for about $6 billion.

TradeSpark also said that more than 125 companies and roughly 550 traders are
currently registered to use the system to execute their energy transactions.

It was the first time that the limited partnership had released data on
trading volumes and user numbers.

Most electronic energy trading platforms have been reluctant to release such
information and analysts have predicted that only a handful who succeed in
generating large volumes of business relatively quickly, will survive the
inevitable shakeout ahead.

SYSTEM USERS INCLUDE ENRON

Williams said TradeSpark had already signed up "all the big names" in North
America's wholesale natural gas and electricity business, including its
800-pound gorilla, Enron Corp..

"They are a user of the system. They've been a customer of ours since we
started," he said of Enron, though he declined to provide further details
about Enron's use of TradeSpark.

Enron launched its own electronic trading platform, EnronOnline
(www.enrononline.com), in late 1999 and used it to execute deals worth $336
billion last year. EnronOnline is a bilateral trading system on which Enron
posts buy and sell prices and is either the buyer or seller in any deals that
take place.

Williams said bilateral and multilateral platforms were completely different
and that both could coexist in harmony.

Enron, for its part, has said it is willing to use any kind of trading
platform that helps its traders to do business.

TradeSpark's founding partners include electronic commerce firm eSpeed Inc.,
brokerage Cantor Fitzgerald, energy firms Williams Cos. and TXU Corp. and
Royal Dutch/Shell affiliate Coral Energy.

Dynegy Inc., which also has its own bilateral trading platform, Dynegydirect
(dynegydirect.com), has used TradeSpark from its launch and has also announced
plans to become a partner in the venture at a later date.

Despite some of the big energy names associated with TradeSpark, Williams
emphasized its neutrality, including anonymity of the prices posted on the
system.

In January, traders who were not associated with one of TradeSpark's founding
partners accounted for 58 percent of all trades, up from 48 percent in
December.

Williams said TradeSpark would expand its product offerings next month to add
physical natural gas products alongside the financial gas instruments
currently available.

Financial electricity instruments will also be added some time this year, he
said, to complement the physical electricity products on offer now.



Folder Name: Rahil Jafry
Relevance Score on Scale of 100: 86

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