See resolution memo from Andy Cornfield and Llloyd Fleming sent separately 
---------------------- Forwarded by Mike Jordan/LON/ECT on 23/11/2000 12:37 
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	From:  Lloyd Fleming                           22/11/2000 19:30
	

To: Rick Buy/HOU/ECT@ECT
cc: Ted Murphy, David Port, Gary Hickerson/HOU/ECT@ECT, Shane 
Dallmann/LON/ECT@ECT, Michael J Hutchinson/EU/Enron@Enron, Tim R 
Jones/EU/Enron@Enron, Mike Jordan/LON/ECT@ECT 

Subject: Enron Metals FX

Rick,

I thought you might be interested in some information brought to me today by 
Andy Cornfield (Director with the London Risk Management Operations team), 
with regard to FX positions at Enron Metals:-

The overall FX exposure of the metals business is not yet routinely laid off 
with the FX / Interest rates desk.  

Euro currency exposure associated with a Euro Aluminium option is managed by 
Tim Jones, the Head of the Metals Financial Trading desk.  This position is 
managed under a limit of $30m, which was MG's old FX limit.   Enron Metals is 
treating this limit as an Enron Corporate FX limit for the purposes of 
managing this position and all other FX exposure.

Proprietary FX positions are occasionally being taken - most recently, Andy 
has found that yesterday a metals trader opened a long Euro 5 million 
position for value 28/11.  The trader is not the principal FX trader on the 
metals desk, although he was formerly an FX trader with Billiton (acquired by 
MG in 1999)  and he became MG's assistant FX trader prior to Enron's 
acquisition of MG.

With regard to the last item, Risk Management and RAC discussed this with 
Mike Hutchinson and it was agreed that the Euro 5m position will be closed 
out tomorrow. 

As far as the first two items are concerned, RAC and Risk Management will be 
working with Commercial heads to help ensure that Enron Corporate policy is 
clearly communicated and applied.

regards


Lloyd Fleming
RAC Market Risk Management
Ph: + 44 20 7783 4532
Mobile: + 44 7760 17 87 42