Mark:

One issue to keep in mind regarding membership in this exchange:  if there is 
no clearing house and the exchange is the counterparty to all transactions, 
who bears the liability when a third party defaults?  We certainly need to 
know if it is the exchange membership.  If not, how is the liability limited 
and on whose credit would we be relying if we trade?

Mark




Mark Elliott
04/06/99 06:02 AM
To: ECT London European Trading
cc:  
Subject: APX - Membership Application

Just to let you know that last Thursday, we submitted, in the name of Enron 
Capital & Trade Resources Limited, an application at very short notice to 
become one of the first members of the Amsterdam Power Exchange.

The Exchange still has many outstanding issues to resolve re its mode of 
operation and I shall keep you informed of progress.  The Exchange is due to 
go live, however, at the beginning of May 1999 but our feeling is that there 
are so many substantial issues remaining to be resolved that either it shall 
not hit this deadline or, if it does, it will be in a very chaotic state.   
However please note that initially it is proposed that the Exchange is simply 
for day-ahead physical power deals; the Exchange is the counterparty to 
transactions and there is no separate clearing house.

It is proposed that at some future stage a financial futures' market will 
develop when our SFA-regulated entity will then have to become an Exchange 
member - but this is some way off. 

Kind regards

Mark