I understand, however, each book you assign to a trader will have a line so 
you and I can follow the performance of each book/trader.  Ok if you want to 
take over arb books, but they (positions and p&l will be your responsibility 
and will be judged by performance--like any other book/trader) must be 
managed without the team approach of books prior.    The 1 million Var 
applies to the line next to Ross's name on the p&l sheets.  I don't know how 
many people trade that book, but I assume it is only ross.  If ross get's 
bulled up at every sign of snow in london, all the more reason to get a 
weather guy hired asap.  

Small positions, and taking profit frequently is the key to turning this boat 
around.  

Later,   Jeff




Chris Mahoney
01/02/2001 03:22 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc: John L Nowlan/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, Bjorn 
Hagelmann/HOU/ECT@ECT 
Subject: Re: 1 mil var for london distillates  

jeff - in the anticipation of moving to a global book I have had the back 
office set-up individual books for all of the
distillate traders.  I had asked the traders two weeks ago to clean-up the 
book as much as possible as we 
approached year end so that we could break-up the book easily in early 
january.  unfortunately, they have
not done this and I had instructed all of the london distillate traders 
(koller,o'brien,talvitie) today that if they 
wanted any positions they were to let me know by the cob today because I 
would be liquidating the book this 
week.  the only thing I insisted they take is the otc diff swaps that are 
traded for the physical bbls they are 
all assigned to trade.   in the case of ross these are large positions but 
the back office is making those changes
tonight and we can see what the var of those positions is tomorrow.   the 1 
million var limit for london distillates we
will need to calculate by the sum of their 3 positions.   in regards to the 
book presently under ross I will 
get that down to 1 mil var but ask that you give me weds and thurs to get 
this done.  I will try to get this all done
by tomorrow and had been reducing the positions today.  I would like to get a 
var for the global distillate
book and will assume for now that the 1 mil will be for the 3 london 
traders.   I will assume ownership
of all of those positions in the koller distillate book from now on so that 
these these guys, and ross specifically, 
can clear their heads and start over with as close as possible to a clean 
sheet of paper.  I made if very clear
to them that starting over was a question of rebuilding credability and they 
should take great efforts to ensure
that any positions they liked was put on at a low risk entry point and with 
small volumes.  to get some of the 
losses clawed back from friday though I would like to make you aware that 
this book has about a 3.5 million 
dollar climb to just get back to breakeven for 2001.  lastly, I will also 
take over all of the positions in the london/
singapore and us/uk arb books.  I would like this book to be renamed - 
mahoney physical.   the koller
distillate book will be renamed mahoney financial.  



   
	
	
	From:  Jeffrey A Shankman                           02/01/2001 20:52
	

To: John L Nowlan/HOU/ECT@ECT, Chris Mahoney/LON/ECT@ECT
cc: Scott Earnest/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT 

Subject: 

Starting tomorrow, Jan 3, the London Distillates book run by Ross Koller will 
have a max var position of  $1 million.   Chris, please take care of this 
with Ross.  

Thanks

Jeff