Gentlemen,

You are invited to attend this meeting  (and any additional meetings on the allocation of drift) at your convenience.  Let me know if your interested, otherwise, I'll keep you updated on our progress.  Sheila Glover will chair this group.  Obviously, we will need significant support from ops and IT.

Gary


---------------------- Forwarded by Gary Hickerson/HOU/ECT on 04/27/2001 07:16 AM ---------------------------
   
	  From:  Sheila Glover                           04/26/2001 03:55 PM	
		


To:	Harry Arora/HOU/ECT, Wes Colwell/HOU/ECT, Shane Dallmann/LON/ECT@ECT, Joseph Deffner/HOU/ECT, Gary Hickerson/HOU/ECT@ECT, Pushkar Shahi/HOU/ECT@ECT, Georgeanne Hodges/HOU/ECT
cc:	 
Subject:	Discussion points for tomorrow's 10:00 am meeting, EB3083

Below is a list of things we may want to consider.

Items for Discussion
Daily Cash Settlement of Drift
Follow-up to April 26, 2001 meeting

Purpose:
	Daily cash settlement of Drift to relevant business unit
	
Discussion points:

?	Daily settlement of drift on a cash settlement basis
			Synthetic cash process because all cash at Corp level?

?	Group receives its commodity calculated drift per Infinity
	Need to assign attribution of business unit to each of 570 MTM books
	What level of allocation back to the business unit? (ENA, EGM, EIM, EES, EEL, NOK, EBS, Assets. )

?	Hedge book allocation to business unit

?	Pricing of cash flows at mid has to change
			Commodity cash flows currently receive mid whereas Hedge book pays bid-offer spread
			Creates downside which currently falls out in Rho

?	Direct and Indirect Expenses for Rate & Currency desk will need to be allocated back to same business units
		% allocable to drift
		Allocation methodology for expenses (PV of cash flows, transaction count, structured deals)

Attendees:  
Harry Arora
Wes Colwell
Shane Dallmann
Joe Deffner
Sheila Glover
Gary Hickerson
Pushkar Shahi