No problem.  I need to talk to Keith, but it looks like the Price desk may have a process that would work for us.

 -----Original Message-----
From: 	Grigsby, Mike  
Sent:	Tuesday, October 16, 2001 10:49 AM
To:	Bike, Anne
Subject:	RE: Booking New Deals

thank you

 -----Original Message-----
From: 	Bike, Anne  
Sent:	Monday, October 15, 2001 1:20 PM
To:	Grigsby, Mike; Gossett, Jeffrey C.
Subject:	Booking New Deals

Mike and Jeff:  I would like to review our existing new deal procedures, and outline the additions I have made to our process in light of the error we found last week.

I have attached a spreadsheet that contains the existing procedures used by Risk to check our new deal entry every night.  I agree that the process must be enhanced because it leaves some room for errors because each Risk person is responsible for checking his or her own inputs.  The existing procedures do not have a backstop in place for catching volumetric errors. We will have an additional "check" in place if the traders and the Risk group arrive at the same net new deals positions from independent sources.

The following spreadsheet describes our existing process.  The only addition to the procedures is the last section on Deal Entry.  That section describes the new standardized Notebook and the deals to be entered by Risk.

 << File: NewDeal Procudures.xls >> 

The new procedures that are being put into place include the following:

1. All traders will use a standardized notebook for writing up their financial trades;
2. The traders will no longer be entering their own financial deals;
3. The traders will keep an electronic record of the volumes traded through the broker market that will then be consolidated with the EOL trades done.  This net position should tie out to the net position entered into the system by Risk. 

Keith Holst has had a similar function in a model that he runs; However, we decided that not only is his model to elaborate and complicated to be disseminated to all of the traders, but also this section has not been working.  I am working with Keith to design a simple process that will serve our needs and can be easily adopted by all Traders and Book Administrators.

I will have the standardized notebooks ready for use by the traders on Tuesday morning.

Please let me know if you have any comments or questions.