Adam:
Good question.  The exchange, NYMEX, and I, Enron Online, offer a nearly 
identical product.  The fight is over which execution model is superior.  I 
would argue that technology will make open outcry exchanges extinct.  It's 
happened in Europe already.  The largest commodity exchange in Europe, the 
LIFFE, went with a parallel electronic system to open outcry.  Within weeks, 
the floor was deserted and virtually all trading occurred electronically.  I 
still trade on the exchange because we have credit issues with individuals 
and certain hedge funds that limit the trading we can do with them direct.  
The exchange still provides a credit intermediation function that is useful.  
It is certainly an issue that we are trying to address.   
John




"Bayer, Adam Ryan" <adam.r.bayer@vanderbilt.edu> on 10/03/2000 01:23:01 PM
To: John.Arnold@enron.com
cc:  
Subject: Thank you for dinner last night


Dear Mr. Arnold,

 It was nice to meet you yesterday at the
information session.  Thank you for the dinner last night.
I had a great time getting to know Enron and its people in
a more relaxed setting.

 During out conversation yesterday, I was confused
about a point you made. You stated that you spent most of
your time on the phone with Traders in New York.  When
you talk to the traders, do you try to steer them towards
Enron Online, or are you doing trading outside of Enron
Online?  I think the underlying question that I am asking,
is: Is Enron Online meant to facilitate a gas trader's job,
or is it meant to bypass traders completely.

Thanks again for your time and for dinner. I look forward
to talking with you again when you come to campus for
interviews.

Cordially,

Adam
-----------------------------------------------------------------
Bayer, Adam Ryan
Vanderbilt University
Email: adam.r.bayer@Vanderbilt.Edu