FYI
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From: Mike.Fowler@enron.com
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<PETEJ@andrews-kurth.com>; Tue, 3 Oct 2000 13:27:53 -0500
Subject: Trading Edge
To: PETEJ@andrews-kurth.com
Date: Tue, 3 Oct 2000 13:27:57 -0500
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The language you had Buy Side Direct add to section 5.2 their agreement
very clearly describes the role of BSD and their clearing firm:

   "BSD is the Subscriber's counterparty until trade affirmation.  After
   trade affirmation, BSD's clearing firm is responsible for the clearance
   and settlement of all affirmed trades executed on the BSD trading
   system".  (Section 5.2)

The Trading Edge agreement states that "all trades are executed by Trading
Edge on a riskless principal basis".  Does this language clearly indicate
that our credit exposure is to Trading Edge (until trades are affirmed) ?
If not, can we ask Trading Edge to incorporate language similar to the
above statement from the BSD agreement ?

Thanks.

Mike
713-853-9990