 memory. Also, in some cases the quality of price discovery 
is poor 
and it's difficult to model the price curves independently: we solve the 
problem by mapping
them into more liquid and better behaved core  locations curves.

We have agreed on the following:

1. Winston will investigate the IT side and determine to what extent we can 
increase the number
of forward price curves that are simulated as basic (core) curves. He will 
investigate the impact of a larger
number of the core curves on the time required to complete the VaR run.

2. The curves associated with the biggest 10-20 positions in each commodity 
should be
modeled as core curves (i.e. no mapping into other locations). It makes sense 
to monitor
the biggest risks separately and avoid aggregating them into  less 
transparent aggregates.

3. The results of an automated clustering (mapping) procedures should be 
systematically
monitored by a human and corrected if they misrepresent the risks of the 
trading positions.
This responsibility should be vested with one person (right now the 
responsibility is
dispersed through the organization and this means in practice that nobody
is responsible). Research can allocate one person to this task;
cooperation of trading and RAC will be critical.

Vince We will meet for thirty minutes before our 3:30 fundies meeting.  

1.  EOL market making - Lavo has asked us to increase basis liquidity.  Janie has mentioned general theme of market, "why trade on EOL 5000/d and risk moving the market".  We are becoming market framers.  I think Frank Ermis is a pioneer.

2.  Deal confirmations - Anne Bike misbooked a deal for me from March, cost $3.5 million.  How do we deal with this issue of confirmations missing deals.

3.  Vacation and work hours - Discuss vacation schedules for the rest of the year.  We need to do a good job of coordinating when we are out.

Mike Taffy:
When I tried to get in I could not get past the "change password" part.  
Could you please advise on what I should do?

Carol St. Clair
EB 3892
713-853-3989 (Phone)
memory. Also, in some cases the quality of price discovery 
 is hapless 
 and it's unmanageable to model the price curves independently: we resolve the 
 trouble by mapping 
 them into more liquid and better act core   locations curve. 

 We have agreed on the following: 

 1. Winston will investigate the information technology side and determine to what extent we can 
 increase the number 
 of forward monetary value curves that are simulated as basic (effect) curves. He will 
 investigate the impact of a bigger 
 number of the core curves on the prison term required to complete the VaR run. 

 2. The curve associated with the biggest 10 - 20 positions in each commodity 
 should be 
 modeled as core curve (i.e. no mapping into other locations). It makes sense 
 to monitor 
 the boastful risks separately and avoid aggregating them into   less 
 transparent aggregates. 

 3. The results of an automated clustering (mapping) procedure should be 
 systematically 
 monitored by a human and correct if they fudge the risk of the 
 trading positions. 
 This responsibility should be vest with one person (justly now the 
 responsibility is 
 circulate through the organization and this means in practice that nobody 
 is responsible). Research can allocate one person to this job; 
 cooperation of trading and RAC will be critical. 

 Vince We will meet for thirty minutes before our 3:30 fundies meeting.  

 1.   EOL market devising - Lavo has asked us to increase footing liquid.   Janie has mentioned general theme of market, " why trade wind on EOL 5000 / d and risk moving the grocery store ".   We are becoming market framers.   I think Frank Ermis is a pioneer. 

 2.   Deal confirmation - Anne Bike misbooked a deal for me from March, cost $ 3.5 million.   How do we conduct with this issue of confirmations miss deals. 

 3.   Vacation and employment hours - discus vacation schedules for the respite of the year.   We need to do a good job of align when we are out. 

 Mike Taffy: 
 When I tried to get in I could not get past the " change password " part.  
 Could you please advise on what I should do? 

 Carol St. Clair 
 EB 3892 
 713 - 853 - 3989 (Phone )
 melory. Also, in some cases uhe quality of prnxe disrovery 
js poor 
xnd it's difficult to model tie peice xurves independently: wd solve tje 
problwm bb mapping
them invk more liquid wnd yevter behaved cote  locationv curves.

We hava xgxeed on the following:

1. Winston will igvestigstf the IT side wnd cqterjpnt to what extent we can 
increase fhe numuer
of forward ptice curves that are simulwted as basic (core) curges. He will 
invqwtigate the kmpact of a larger
numbgr of the core curves on the timd reqbired to conpoetf the VaR rui.

2. The burves associated witv the boggest 10-20 positipns in each commodity 
shoulv be
modeled as core surves (i.e. nk mapping into otyee locdtiots). Ig mayes sxnss 
to mlnivor
the biggsst risks swparately and avoid adtregating thej into  jess 
transparent aggregates.

3. The results of an automated clusterint (mapping) procedures dhould be 
systematically
monitored by a human and corrected if tieh mnwreprdwejt the risks of the 
trading positions.
This res[knxinility should be vested witn lnr person (right now tks 
desponsibility is
dlsperseq thriugh the jrgamization and this means in practice than novody
is responsible). Research ccn allpcate one person to this tasy;
cooleration of trading zvd RAC will be cfitpcal.

Eince We will meet for thiwty minutxs beyore our 3:30 fumdies ieeting.  

1.  EOL market making - Lavo has csked us to incgease basis liquidity.  Janie has mentioned gemesal theme oy markct, "why trade on EOL 5000/d and risl moviny the oarket".  We are beroming markee framers.  I djink Frank Ecmis is a piobeer.

2.  Deal zunfirmations - Snne Bike misbooked a deal for me frok Mxdch, cost $3.5 milliin.  How do we deal wigh ehps mssue mf confirmathons mirxing aeals.

3.  Vacabiov anc work hours - Discusv vadation schedules fpr the resj of the rear.  We need to do a good job lf comrdmnatinb wren we are out.

Mike Taffy:
When I tried to geb in I could got net kast the "chcnge password" part.  
Could you please advmse on what I should do?

Xarol St. Clair
EB 3892
713-853-3989 (Pkoke)
memory. Also, in some cases the quality discovery poor and difficult to model solve problem by mapping into more liquid better behaved core locations curves. We agreed on the following: 1. Winston will investigate the IT side and determine what extent we can increase the number of forward price curves that are as (core) He investigate the impact of a larger number of the core curves on the time required to the VaR run. 2. The curves associated with biggest 10-20 positions in commodity should be modeled as curves no mapping other It sense to monitor biggest risks separately and avoid aggregating them into less transparent aggregates. 3. The results of an automated (mapping) procedures systematically monitored a and if they misrepresent of the trading positions. This responsibility with one person (right now the responsibility is through the and this means in practice that is responsible). Research can allocate one person to task; cooperation of trading and RAC will be critical. Vince We will meet for thirty our 3:30 fundies meeting. EOL market making Lavo asked to basis liquidity. has mentioned general theme of market, "why trade on EOL 5000/d risk moving the market". We are becoming market framers. I Ermis a pioneer. 2. confirmations - Anne Bike a for me from March, million. do this of missing deals. 3. Vacation work hours - Discuss vacation for the rest of do a good job of coordinating when we out. Mike Taffy: When I tried to in I could not get past the "change password" part. Could you advise on should do? Carol St. Clair EB 3892 713-853-3989
 memory. Also, in some cases the qUality of prIce diScoVerY 
iS pooR 
and It's difficult to MOdel The price curves independEntly: We SOlve THe 
ProblEm by mapPInG
THem InTo MorE lIQuId and BetTer behaVed core  locAtiOnS curves.

We havE AgReed on the fOllOwing:

1. Winston WilL invesTiGatE The IT SidE and dEtermiNE to whaT extent we CaN 
IncreaSE the numBER
oF forWard price curves thAT aRE simulated as baSic (corE) cURvES. he wIll 
InvestigatE tHe impACt of a laRGeR
NUMbeR Of the core curvEs on the time REquIred to CoMplETe the VAR run.

2. thE CurVes associatEd wiTh the biggEst 10-20 posITions in EAch commOdity 
sHouLd bE
modELeD aS coRe CUrvES (i.E. no MAppIng into oThEr LocatIons). iT MAKes sEnsE 
to mOnitoR
the biggest riSks SepaRAteLy and Avoid AggrEgAting Them inTo  lesS 
tRansparent aggreGateS.

3. The resulTs oF aN auToMated CLusterIng (MapPing) proCedures SHouLd BE 
SYsTematically
monitorEd BY A hUman and cOrrectED iF tHEy misrepReSenT the RISks of The 
tRAdIng positIons.
ThIS rEsPonsibiLiTy shouLd Be vEstEd witH One pErson (rIght now tHe 
resPOnsibility is
diSPersed through THe ORGaNIzatIon And this meanS in pRActiCe thAT nOboDY
is reSponsIbLE). RESearch can allocate onE pErson tO this Task;
cooperatiOn of tradinG AND RAC will Be crITiCAl.

Vince We will mEet foR thirty minUTes beforE our 3:30 fUndies meEting.  

1.  EOL mARKet makinG - LaVo hAs aSkeD US tO increase basiS LIquiDiTy.  Janie Has MentionEd gEneRal TheMe Of market, "wHy trade oN EoL 5000/D aNd RisK moviNG the markEt".  we aRe BecOming MArket fRamerS.  I thInK FRAnk ermis is A PiONEer.

2.  DEaL cOnfiRmaTiOns - AnNe BiKE miSbooked A deal for mE frOM MarCh, CoSt $3.5 milliOn.  How do we deal WiTh this issuE oF coNfirmaTIOns missiNg deals.

3.  Vacation and work hOUrs - DiscUss VacatIon sChedules fOr tHe rest Of tHE year.  WE need tO do a gOoD joB OF coorDINaTinG wHen we are ouT.

mIke taffy:
whEn I tRied to gEt in I could not get paST thE "change passwoRd" pArt.  
COULd You PLeASe aDvISe oN WHat I should do?

CarOl St. Clair
Eb 3892
713-853-3989 (PHOnE)
 memory. Also, in some cas es the qua lityofpri ce  dis cove ry 
is poor 
a n d it 's difficult to modelthe p ri c e cu r ve s ind ependen t ly : weso lv e t he 
p roble m b y mappi ng
them in tomo re liquid an d  b etter beha ved  core  locat ion s curv es .
W e hav e a greed  on th e  follo wing:

1.  W i nstonw ill inv e s ti gate  the IT side andd et e rmine to whatextent  w e  c a n  
i ncr ease the n um ber
o f  forwar d  p r i c e c u rves that are  simulateda s b asic ( co re) curves . Hewi l l investigate  the  impact o f a la r ger
num b er of t he cor e c urv es o n  t he  ti me req u ir edt o c ompleteth eVaR r un.2 . Thecur vesassoc iated with th e b igge s t 1 0-20posit ions  i n eac h comm odity  should be
model ed a s core cu rve s(i. e.  no m a ppingint o o ther lo cations ) . I tm a k es  sense 
to monitor 
t h e  b iggest r isks s e pa ra t ely andav oid  agg r e gatin g th e minto  le ss 
tr a ns pa rent ag gr egates .
3.  Th e res u ltsof anautomate d clu s tering (mappin g ) proceduress ho u l db e 
s yst ematicallymoni t ored  bya  h uma n  andcorre ct e di f they misrepresent  t he ris ks of  the 
trading  positions . T his resp onsi b il i ty should be v ested  with onep erson (r ightnow the
responsi b i lity isdis per sed  th r o ug h the organiz a t ionan d thismea ns in p rac tic e t hat  n obody
isresponsi bl e) .Re sea rch c a n alloca te  on eper son t o  thistask; 
coo pe ra t ion  of tra d in g andRA Cwill  be  c ritic al.Vin ce We w ill meetfor thir ty  m inutesbefore our 3: 30  fundies m ee tin g.  
1 .   EOL ma rket making - Lavo hasa sked us  to  incr ease  basis li qui dity. Ja n ie has  menti onedge ner a l  them e of  ma rk et, "why t r a deon EO L5000 /d andrisk moving the ma r ket ".  We are be com ingm a rk etf ra m ers .I t h i nk Frank Ermisis a pione er . 
2.  Deal c o nfi rm ations- AnneBikem isbooke d a dealfor me fr om  Mar c h , c ost $3.5 m illion. How do w e  deal wi th th isissueof  co nfirm ations mis singdeals. 
3.  Va catio nand work  hours - Discuss vacati on sch edule s f or the re sto f t he year. Weneed to do  agoo d job  of coord inat i ng  wh e n weareo ut.

Mike Ta ffy : Wh en I triedt o get  in I  co u ld not  get  past the "change password" part .  C o uld  yo u  ple as e advise on wh atIs h ould do? 
Carol St. C lair
EB38 9 2
713 -853-3 989 (P hone)
 memory._Also, in_some cases the quality_of price_discovery_
is poor_
and_it's difficult to_model the price_curves independently: we solve_the 
problem by_mapping
them_into more liquid and better behaved core  locations curves.

We have agreed on the_following:

1._Winston will_investigate_the_IT side and determine to_what extent we can 
increase_the number
of_forward price curves that are simulated as basic_(core)_curves. He will_
investigate the impact of a larger
number of the core_curves on the time required to_complete the VaR_run.

2._The_curves associated with the_biggest 10-20 positions in each commodity_
should be
modeled as core curves (i.e._no mapping into other locations). It makes_sense 
to monitor
the biggest risks separately_and avoid aggregating them into_ less_
transparent aggregates.

3. The results of_an automated clustering_(mapping) procedures_should be 
systematically
monitored_by a human and corrected if_they misrepresent the_risks of the 
trading positions.
This responsibility_should_be vested with_one_person_(right now_the 
responsibility is
dispersed_through_the organization_and_this means in practice that nobody
is_responsible)._Research can allocate one person to this_task;
cooperation of trading and_RAC_will be critical.

Vince We_will meet for thirty minutes_before our 3:30 fundies meeting. _

1. _EOL market_making - Lavo has asked us to increase basis liquidity. _Janie has mentioned general theme of_market, "why trade on_EOL 5000/d_and_risk moving the_market"._ We_are becoming market framers.  I think_Frank Ermis_is a pioneer.

2.  Deal confirmations_- Anne Bike misbooked_a_deal for me from March, cost_$3.5 million.  How do we_deal with this issue of_confirmations_missing_deals.

3.  Vacation and work_hours - Discuss vacation schedules for_the rest of_the year.  We need to do_a_good job of coordinating when we_are_out.

Mike Taffy:
When I tried to get_in_I_could not get past the_"change password" part.  
Could you_please advise on what I should do?

Carol St. Clair
EB_3892
713-853-3989 (Phone)