Using your numbers:
1.  No.  We won't do that until we think we have to.
2.  Not entirely, they have to meet certain more restrictive tests depending on how they are organized (i.e. how sophisticated are the investors).  A fund group like Fidelity that allows my Mom to invest has to have $1,000,000,000 in assets.  A true hedge fund that limits its investors to those meeting certain sophistication requirements only needs $100,000,000 in total assets.
3. Yes
4. Only if we become "regulated."  Currently we still maintain that we are a one-to-many site and are not yet subject to these rules. 



	David Forster/ENRON@enronXgate 04/27/2001 05:18 PM 	   To: Mark Taylor/HOU/ECT@ECT  cc: Andy Zipper/ENRON@enronXgate  Subject: RE: Electronic Trading Facilities for Transaction in Exempt Commodities	


OK - so based on this document:

1) Are we registered with the CFTC?
2) Are we prohibited from transacting with hedge funds ("investment company")?
3) Are the "exemption conditions" with which the facility must comply just the conditions listed in the document?
4) Could you clarify: Do the conditions described in the document apply to us now, or only if we become "regulated"?


As per our conversation, I understand that FX is subject to even less stringent requirements than our current commodities are. 

Thanks,

Dave


 -----Original Message-----
From: 	Taylor, Mark  
Sent:	Friday, April 27, 2001 3:32 PM
To:	Forster, David; Zipper, Andy
Cc:	Greenberg, Mark
Subject:	Electronic Trading Facilities for Transaction in Exempt Commodities

Attached is a brief outline of the requirements for electronic trading facilities for transactions in exempt commodities.  Exempt commodities are all commodities other than financial commodities (e.g. interest rates, currencies, securities) and agricultural commodities.

 << File: Electronic Trading Facility for Exempt Commodities.doc >>