Ken:  In connection with our new product (and  absence of any physical 
activity in that product), I have the following question:

If neither ENA nor its counterparty is able to qualify as an offeree for 
purposes of the Trade Option Exemption (17 CFR Sec. 32.13, as amended) but 
each is an eligible swap participant (or better yet, each party has $10 
million in net worth as per Sec. 32.13) can the option still be exempt from 
CFTC regulation under the Swap Policy Statement or any CFTC interpretive 
letters?

I have concerns about not relying fully on the Trade Option Exemption but I 
also understood that the CFTC has informally said that the Swap Policy 
Statement provides a safe harbor for both swaps and options.

I am available to speak at your convenience.  Thanks.  Sara [713/853-5620]