uk gas late deal input deal booking errors ol 1 hit sorry hear one observations make reading reading account 1 looks like old undue influence problem seems attempts made operations follow nothing happened tell operations staff obligation dissent way protect still fear upset trader get fired held back career twice year prc happen incident shows attributes operations process effective seen little significant influence commercial groups ranking operations staff 2 whoever signed new deal lists dpr asked confirm basis signed 3 wait traders approve payments brokers brokerage p l operations satisfied trades accurate brokerage agreed rate simply pay brokerage 4 two weeks check telephone tapes unacceptable done day would waited traders would want know took long 5 given short trades absent portfolio highly volatile period rising prices would wonder motivation addressing position time essentially correct would reporting losses bigger ones would pursue explanations points 2 4 5 dp fernley dyson ect 06 12 2000 02 41 james new lon ect ect cc richard lewis lon ect ect mike jordan lon ect ect robert yeo lon ect ect gail hill lon ect ect ian sloman lon ect ect steve w young lon ect ect david port market risk corp enron enron brent price hou ect ect subject uk gas late deal input deal booking errors ol 1 hit james thanks note described intolerable situation agree action points need timelines quantitative measures compliance improvement please could provide weekly update area specifically satisfied things general note let ensure global standards address lapses timely action follow identified monitor performance across business fernley james new 09 06 2000 10 03 richard lewis lon ect ect fernley dyson lon ect ect mike jordan lon ect ect cc robert yeo lon ect ect gail hill lon ect ect ian sloman lon ect ect subject uk gas late deal input deal booking errors ol 1 hit 7 th june gas risk management became aware two late trades entered gas trader blue book booked significantly late material negative p l impact negative ol 1 late deals done 3 rd february marcello romano 30 th march haakon olafson forward starting sells periods 2003 2004 background 1 input errors considerable time concerned number deal input errors occurring gas area significant number coming form uk gas traders numerous errors found documentation risk management accuracy timeliness entering deals blue book gas traders currently traders europe enter trades valuation system currently big push change support john sherriff deadline date 31 july past documentation gas risk management repeatedly highlighted booking errors gas traders error rate fallen log deal input errors formally maintained since beginning may highlights error rate 12 15 non eol trades discussed richard lewis corrective action expected 2 deal booking reconciliation process non eol trades deals initially written blue book gas traders deal done book photocopied several times day deals manually input gasdesk documentation day faxed broker statements received usually documentation next day reconciled gasdesk errors amendments made documentation liasing traders necessary time brokers faxing one statement per trade relevant later 3 new deal sign part daily dpr process separate new deal sheet prepared signed traders formally agree new deals done day implied origination p invoice received 15 march settlements started checking keren perrott settlements started 13 march discrepancies sent documentation 23 may chris ware emma thomson traders contacted 24 may copy broker confirm sent 22 may requested documentation prove deal deal entered 6 june traders checked tapes ieb broker np trade 30 mar 2000 trader haakon ieb invoice date 6 april invoice received 27 april settlements started checking keren perrott discrepancies sent documentation 23 may chris ware robert vaughn traders contacted 24 may copy broker confirm requested deal entered 6 june traders checked tapes fault control break feel constructive try attach blame happened lessons learned general observations conclusions made drawn firstly major concerns gas trader accuracy prioritisation booking trades despite numerous conversations subject little improvement seen got stage documentation formally recording errors including error made communicated richard lewis every two weeks aim reduce amount time trade support spend correcting errors running dprs also try avoid incidence errors current error rate 12 15 non eol trades documentation currently estimate 9 times 10 broker counterparty correct secondly around month ago contacted brokers asked provide us one statement per day rather one per deal eliminate lost statements missed deals immediately obvious statement broker arrived brokers changed one two still send one statement per trade reconciliation daily statements gasdesk evidenced thirdly impressed documentation settlements follow vigorously mail errors omissions timely basis however backlog broker invoices checked settlements nto checked approved traders causing concern brokers chasing payment action points trading traders input deals directly gasdesk traders improve accuracy deal booking traders approve invoices timely basis trade support settlements clear backlog broker invoices documentation chase brokers send daily deal statements individual deal statements follow ups evidenced mails used appropriate documentation check trades since beginning year versus broker records documentation perform reconciliation counterparties agree forward position july 2000 september 2006 traded part curve