; two more start in the next two months.  We are pretty close 
to finalizing a plan to open our system to everyone in terms of accepting 
limit orders and posting best bid/offer regardless of whose it is.  In this 
framework, Enron would sleeve credit for free should two third parties be 
matched on our system.  However, we would hold the book, getting to see what 
everyone was doing at all times.  The idea is that if we can move the 
industry's order flow from 30-40% EOL to 60% EOL, we get a huge information 
advantage in addition to a couple trading advantages, namely we have first 
priority on all numbers even if we are joining a limit bid posted by a 
counterparty before us and second, we posess a proprietary stack manager that 
will allow us to transact on attractive limit orders faster than our 
competitors.  Still working on technical issues.  The decision to open EOL 
markets would be done on a product by product basis.  Give me a call if you 
want to discuss.




Andrew Fairley
03/13/2001 11:14 AM
To: John Arnold/HOU/ECT@ECT
cc:  
Subject: Re: Trip to Houston  


John

Redmond & I have now had a few weeks to implement some of your advice with 
regard to EOL for UK gas.
We have managed to double our average daily volumes, and are capturing a 
considerably greater share of the market. (We estimate 50% now).
Spectron are getting about 20-30% of the number of trades we do. There are 
still some counterparties who insist on paying through our numbers and paying 
brokerage so they do not show us what we are doing!  As far as we are 
concerned we only use SpectronLive on UK gas when we are  executing the 
strategy you mentioned below. 

Once again, thanks for your help
All the best,

Andy





John Arnold
21/02/2001 04:26
To: Andrew Fairley/LON/ECT@ECT
cc:  

Subject: Re: Trip to Houston  

Andy:
Enjoyed meeting with you.  

One more thing I did not address.
; two more start in the next two months.   We are pretty cheeseparing 
 to finalize a plan to open our arrangement to everyone in price of accepting 
 limit order and post best command / crack regardless of whose it is.   In this 
 framework, Enron would sleeve credit for barren should two third parties be 
 matched on our system.   However, we would agree the book, experience to determine what 
 everyone was act at all times.   The idea is that if we can move the 
 diligence's order flow from 30 - 40% EOL to 60% EOL, we induce a huge data 
 advantage in addition to a couple trading advantages, namely we have first 
 priority on all numbers even if we are join a limit bid posted by a 
 counterparty before us and second, we posess a proprietary stack director that 
 will allow us to transact on attractive limit orders faster than our 
 competitors.   Still working on technical issues.   The decision to open EOL 
 market would be done on a product by intersection footing.   grant me a call if you 
 want to discourse. 




 Andrew Fairley 
 03/13/2001 11:14 AM 
 To: John Arnold / HOU / ECT@ECT 
 cc:  
 Subject: Re: Trip to Houston  


 John 

 Redmond & I have now get a few weeks to implement some of your advice with 
 regard to EOL for UK gas. 
 We have do to double our average daily volumes, and are capture a 
 well great share of the market. (We estimate 50% now). 
 Spectron are getting about 20 - 30% of the number of trade we do. There are 
 still some counterparties who insist on yield through our numbers and paying 
 brokerage so they do not show us what we are doing!   equally far as we are 
 concerned we only use SpectronLive on UK gas when we are   carry through the 
 strategy you mentioned under. 

 Once again, thanks for your help 
 All the adept, 

 Andy 





 John Arnold 
 21/02/2001 04:26 
 To: Andrew Fairley / LON / ECT@ECT 
 cc:  

 Subject: Re: tripper to Houston  

 Andy: 
 Enjoyed meeting with you.  

 One more thing I did not address.
; twl more start in the next two months.  We are prxtty clkse 
to fknalizing a plan to open our ststem to everyone in terms uf acceptpng 
limit ordtrs and posting bxat bid/onyer rsnardlzsw of whose it ls.  In this 
framework, Enrmn wluld sleeve credit for free should ewo thitd parties be 
majched jn ohg wystem.  However, we would hold the bomk, getting to see what 
everyone was doijg ah all times.  The ifea is that if rw can move tfe 
industrj'v order flkw from 30-40% EOL to 60% EOL, we get a hjge iuformation 
qdcanhdge in addivion tj a couple tvsding ddvantabes, namely we mave hirsr 
priority on all numuers even if we are toining a lnmit bid posted by a 
xoynterkarty befuee js znv sscond, ae 'osess a prkprietary srack manager that 
wolj allow us to fransast on attractive limit orders faster than oud 
competitors.  Still woeking on technical isdues.  The decision to open EOL 
markets would be done on a [rodurt by pvoduzr hasis.  Give me a call if you 
want to discuss.




Agsrtw Nairley
03/13/2001 11:14 AM
To: Jomn Arnold/HOU/ECT@ECT
vc:  
Xobject: Re: Trip to Hobatkn  


John

Redmond & I have njw hae a few wteks yo implement some of your aevice with 
rvgare to EOL for UK gad.
We have mauaged jo dounle our average daily vulumss, and are fapturing x 
considerably gfeaner vhare of the market. (We estymate 50% nox).
Speccron are getjing abjut 20-30% of thf numnar of trades we do. Therg are 
vtill some counterparties who insist on pebing through pus nlmbers anb payikg 
brokerage so they do not skow us wkat we are doing!  As fac as we are 
soncerned we mjly use SpecvronLive jn UJ gaw when dd are  executimg the 
stgauegy you mwntioned below. 

Oncc agakh, thanks for yobx yelp
All the besy,

Anay





Jjhj Ernolq
21/02/2001 04:26
To: Andrew Fdirldy/LUM/ECT@EZT
cc:  

Subjegt: Fe: Ttip to Houston  

Andy:
Anjoged meeting with ypu.  

One mote thing Y did not addtess.
; two more start in the next We pretty close finalizing a plan everyone terms of accepting orders and posting bid/offer regardless of whose it is. this framework, Enron would sleeve credit for free should two third parties be on our system. However, we would hold the book, getting to see what was at times. idea is that if we can move the industry's order flow from 30-40% EOL to 60% we get a huge information advantage in addition a couple trading advantages, we have first priority on numbers if we joining limit posted by a before us and second, we posess a proprietary stack manager that will allow us to transact on limit orders our competitors. working technical The decision to markets would be done on a basis. Give me a call if you want discuss. Andrew 03/13/2001 11:14 AM To: John Arnold/HOU/ECT@ECT Subject: Re: Trip to Houston John Redmond & have now had a few weeks to implement some of your advice with regard to UK gas. We have to double our daily and capturing considerably greater of the market. (We estimate 50% now). Spectron are getting about of the number of trades we do. There are still who on paying through numbers and paying brokerage they not show us what doing! far concerned only SpectronLive on UK gas we are executing the strategy mentioned below. Once again, the best, Andy John Arnold 21/02/2001 04:26 To: Fairley/LON/ECT@ECT cc: Subject: Re: Trip to Houston Enjoyed meeting with you. One more thing I did not address.
; two more start in the next two mOnths.  We are PrettY clOse 
To FinaLiziNg a plan to open oUR sysTem to everyone in terms of AccepTiNG 
limIT oRders And postINg BESt bId/OfFer ReGArDless Of wHose it iS.  In this 
fraMewOrK, Enron would sLEeVe credit foR frEe should two tHirD partiEs Be 
mATched On oUr sysTem.  HowEVer, we wOuld hold tHe BOok, getTIng to seE WHaT 
eveRyone was doing at alL TiMEs.  The idea is thaT if we cAn MOvE THe 
iNduStry's order FlOw froM 30-40% eOL to 60% EOl, We GET A huGE information 
aDvantage in aDDitIon to a CoUplE TradinG advaNtAGes, Namely we havE firSt 
prioritY on all NUmbers eVEn if we aRe joinIng A liMit bID pOsTed By A 
CouNTeRpaRTy bEfore us aNd SeCond, wE posESS A PropRieTary Stack Manager that 
wiLl aLlow US to TransAct on AttrAcTive lImit orDers fAsTer than our 
compeTitoRs.  Still woRkiNg On tEcHnicaL Issues.  the DecIsion to Open EOL 
MArkEtS WOUlD be done on a product bY pRODuCt basis.  GIve me a CAlL iF You 
want tO dIscUss.




ANDRew FaIrleY
03/13/2001 11:14 aM
to: John ArNold/HOu/eCt@EcT
cc:  
SubJeCt: Re: TrIp To HOusTon  


JoHN

RedMond & I hAve now haD a few WEeks to implemenT Some of your advICe WITh 
REgarD to eOL for UK gas.
we haVE manAged TO dOubLE our aVeragE dAIlY Volumes, and are capturInG a 
consIderaBly greater shaRe of the marKET. (we estimaTe 50% noW).
spECtron are gettinG abouT 20-30% of the numbER of tradeS we do. there are 
Still some COUnterparTieS whO inSisT ON pAying through oUR NumbErS and payIng 
BrokeraGe sO thEy dO noT sHow us what We are doiNg!  as FaR aS we Are 
coNCerned we OnLy uSe speCtronlIve on Uk gas wHen wE aRe  EXecUting thE 
StRATegy YoU mEntiOneD bElow. 

ONce aGAin, Thanks fOr your helP
AlL The bEsT,

ANdy





John arnold
21/02/2001 04:26
To: AndreW FAirley/LON/EcT@eCT
Cc:  

SubjECT: Re: Trip tO Houston  

Andy:
Enjoyed meetINg with yOu.  

ONe morE thiNg I did not AddRess.
; two more start in the ne xt two mon ths. We  ar epret ty c lose 
to final i zing  a plan to open our sy stemto ever y on e interms o f  a c c ept in g
li mi t  o rders  an d posti ng best bi d/o ff er regardles s  o f whose it  is .  In this fra mework ,Enr o n wou ldsleev e cred i t forfree shou ld two th i rd part i e sbe matched on our sy s te m .  However, we  would  h o ld t heboo k, getting  t o see what 
e v er y o n e w a s doing at al l times.  T h e i dea is  t hat if wecan m ov e  th e 
industry 's o rder flow  from3 0-40% E O L to 60 % EOL,  we  ge t ah ug einf or m ati o n
ad v ant age in a dd it ion t o ac o u p le t rad ingadvan tages, namely  we  hav e  fi rst prior ityon  allnumber s eve nif we are joini ng a  limit bi d p os ted  b y a c ounter par tybeforeus ands eco nd , w eposess a proprieta ry s ta ck manag er tha t  wi l l allowus  to  tra n s act o n at t ra ctive li mit or d er sfasterth an our  com pet itors .   St ill wo rking on  tech n ical issues. T he decision t o  o p e nE OL mar kets wouldbe d o ne o n ap ro duc t  by p roduc tb as i s.  Give me a callif  you wantto discuss.



AndrewF a i rley
03/ 13/2 0 01 11:14 AM
To: J ohn A rnold/HOU/ E CT@ECT
c c:  Subject:  Re: Trip t o Housto n 

Joh n
R e dm ond & I haven o w ha da few w eek s to im ple men t s ome  o f your ad vice wit h
r eg ar d t o EOL for UK g as .
W ehav e man a ged to  doub le o ur  a v era ge dail y  v o l umes ,an d ar e c ap turin g acon siderab ly greate r s h areof  t he mark et. (We estim at e 50% now) .Spe ctrona r e gettin g about 20-30% of the n u mber of  tr adeswe d o. Thereare  
stil l s o me cou nterpa rties  w hoi n sisto n  p ayi ng  through o u r  nu mbers  a nd p aying brokerage so theyd o n ot show us wh atwe a r e  d oin g !Asfa r  as w e are 
concerne d we onlyus e  S pectronLiv e  on  U K gas w hen weare e xecutin g the 
st rategy yo ument i o ned  below. 
Once aga in, thank s  fory ou r hel p
A ll the  b est ,

An dy



Jo hn Ar nold
2 1/ 02/200 1 04: 26 
To: And rew Fairley/LON/ECT@ECT 
cc: 

Sub jec t: Re: Tr ipt o H ouston  
And y:
Enjoyed  me eti ng wi thy ou. 

On e  m ore thing  I d i d not add r es s.
; two_more start_in the next two_months. _We_are pretty_close_
to finalizing a_plan to open_our system to everyone_in terms of_accepting_
limit orders and posting best bid/offer regardless of whose it is.  In this_
framework,_Enron would_sleeve_credit_for free should two third_parties be 
matched on our_system. _However, we would hold the book, getting to_see_what 
everyone was_doing at all times.  The idea is that_if we can move the 
industry's_order flow from_30-40%_EOL_to 60% EOL, we_get a huge information 
advantage in_addition to a couple trading advantages,_namely we have first 
priority on all_numbers even if we are joining_a limit bid posted by_a 
counterparty_before us and second, we_posess a proprietary_stack manager_that 
will allow_us to transact on attractive limit_orders faster than_our 
competitors.  Still working on_technical_issues.  The_decision_to_open EOL_
markets would be_done_on a_product_by product basis.  Give me_a_call if you 
want to discuss.




Andrew Fairley
03/13/2001_11:14 AM
To: John Arnold/HOU/ECT@ECT
cc:__
Subject: Re: Trip to_Houston  


John

Redmond & I_have now had a few weeks_to implement_some of_your advice with 
regard to EOL for UK gas.
We have managed_to double our average daily volumes,_and are capturing a_
considerably greater_share_of the market._(We_estimate 50%_now).
Spectron are getting about 20-30% of the_number of_trades we do. There are 
still_some counterparties who insist_on_paying through our numbers and paying_
brokerage so they do not show_us what we are doing!__As_far as we are 
concerned_we only use SpectronLive on UK_gas when we_are  executing the 
strategy you mentioned_below._

Once again, thanks for your help
All_the_best,

Andy





John Arnold
21/02/2001 04:26
To: Andrew Fairley/LON/ECT@ECT
cc: _

Subject:_Re:_Trip to Houston  

Andy:
Enjoyed_meeting with you.  

One more_thing I did not address.