FW: JCC ,
 Jeff,

The below is a draft requesting the creation of  a JCC book and an outline =
on how the commodity and FX risks will be managed.  I have not included any=
 limits as we should discuss these before hand.  A good deal of work has be=
en done by Research, FX (Shane) and one of our guys, Rousseau Anai.  I have=
 also included the basic swap model (with hard coded numbers if you are int=
erested in road testing) that we have created incorporating a good deal of =
the work as well.  I showed this to Nowlan while in Cabo and he seemed happ=
y.  What I am suggesting, however, is that John does not have to wear the r=
esearch and fx risk.  We we hold this, but be hedged using the methodologie=
s described in the note and research's hedge ratios.  Research would contin=
ue to be involved and evaluating the validity and the correlations on a rea=
l time basis.  Lastly and perhaps most importantly, we would not be startin=
g with the biggest deals in the world.  Small, near term and short duration=
s will help us prove the concept and refine our understanding.

I look forward to speaking to you about this.

Joe

=20

 -----Original Message-----
From: =09Anai, Rousseau =20
Sent:=09Thursday, November 01, 2001 5:58 PM
To:=09Hirl, Joseph
Subject:=09JCC


Joe
Shane has given the thumbs up. Research looked at it yesterday and are happ=
y. Your suggested changes have been made.
Regards
Rousseau
a..shankman@enron.com