Sara:

How much protection do the agreements give us?  I have always assumed that they were primarily for the benefit of the brokers.  Of course, in the U.S. they are probably required by the SEC and in a country where they are not required you have to wonder how well the brokers are being policed by regulators.  I guess it makes sense to at least contact local counsel to find out what protections there are for the customer and whether or not it would be reasonable to ask for something in writing.  I don't think we need written opinions of counsel.  It might also make sense to explain to the business folks that we think there is incrementally greater legal risk in using those arrangements and that while they may be permitted to use them they should keep activities to a minimum where there is a more secure alternative.

Sorry for rambling.

Mark

 -----Original Message-----
From: 	Shackleton, Sara  
Sent:	Tuesday, October 02, 2001 8:39 AM
To:	Taylor, Mark E (Legal)
Subject:	FW: Increase in Demand for Brokerage Agreements

Mark:  Can you please reply to (1) below?
Also, any ideas for help with brokerage agreements?
Thanks.  Sara

 -----Original Message-----
From: 	Shackleton, Sara  
Sent:	Monday, September 24, 2001 6:26 PM
To:	Taylor, Mark E (Legal)
Subject:	Increase in Demand for Brokerage Agreements

Mark:  Please read the attached message.

(1)  Are there any issues with following the "custom" in countries not requiring an executed "executing brokerage agreement"?  Do we need to contact outside counsel in each country?

(2)  I anticipate that I will really need help on the brokerage agreement side.  I cannot keep up now on a "timely" basis.

Gary's world occupies about 50% of my time.
Enron Corp. occupies about 25% of my time.

Thanks.  Sara


 -----Original Message-----
From: 	Brogan, Theresa T.  
Sent:	Monday, September 24, 2001 6:04 PM
To:	Lowry, Donna; Schultz, Cassandra; Bradford, William S.; Shackleton, Sara
Cc:	Hickerson, Gary; Heard, Marie
Subject:	Metzler Capital Markets - Executing broker agreement

To all,
	We have expanded equity trading into the European Markets.  Along with that, you will see an increase of executing broker agreements that specialize in foreign equities.  We plan on executing a broker agreement with Metzler Capital Markets for the purposes of order flow and specialty in Italian equities.  Currently no documentation is required and we would still clear all transactions with our existing Primebrokers, Goldman, Morgan Stanley and Bear Stearns.  In addition, Metzler clears their transactions through Paribas Milan.  

Thanks,
Theresa