I will send you a fax with the applicable pages from the CFTC's 1998 Interim 
Final Rules on Agricultural Trade Options.

>>> <Sara.Shackleton@enron.com> 08/09 11:36 AM >>>
Ken:  Where can I find the CFTC's statement that the swap policy statement
is not available for agricultural trade options?  We are in a "holding
pattern" for the time being.  No products have been developed.  Thanks.
Sara


                                                                              
                                                     
RAISLERK@sull                                                                 
                                     crom.com             To:     
Sara.Shackleton@enron.com                                                     
                             
cc:                                                                           
              08/04/2000           Subject:     Re: Trade Option 
Exemption                                                       11:41 AM







With respect to agricultural trade options, the CFTC has specifically said
that the swaps exemtion and the swaps policy statement are not available.
I will call you.

>>> <Sara.Shackleton@enron.com> 08/04 11:52 AM >>>

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]





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