Subject: EnronOnline Article


USA: INTERVIEW-EnronOnline sees volume growth, CEO says.
By Gelu Sulugiuc  07/17/2001 Reuters English News Service (C) Reuters Limited 2001.
NEW YORK, July 17 (Reuters) - As most players in a shrinking pool of online  energy trading platforms struggle to stay alive, leader EnronOnline has a  simple philosophy: If it ain't broke, don't fix it.
The Internet arm of the energy marketing and trading giant Enron Corp. ,  EnronOnline predicts it will increase its volume and says it can coexist with  the IntercontinentalExchange (ICE), the chief executive of Enron Networks  told Reuters on Tuesday.
The innovative company is always evaluating its business environment, ready  to remold itself according to market demands, but it is not pursuing mergers  or aquisitions for now, according to Greg Piper.
"I would never say never, but we're not proactively looking at aquiring an  ownership position in any other exchange platform," Piper said.
With an average of $3.5 billion in trades every day, EnronOnline enjoys the  highest volume of all energy electronic platforms.
Most energy trading  platforms launched last year have failed to generate profits.
Its closest rival is ICE, which routinely exceeds $1 billion a day.
But while  ICE is a many-to-many exchange that matches bids and offers, on EnronOnline  one can only trade with Enron.
"It's a tool that supercharges our market-making business," Piper said.
Enron is the No.
1 natural gas and electricity marketer in the United States.
About 60 percent of its transactions are captured through the electronic  platform.
"As long as we show good prices to our customers, our volumes will continue  to grow," Piper said.
The company is looking to grow online volume in products such as metals,  steel, weather, petrochemicals and plastics.
"We're trying to remain the leader in energy and help our other markets get  more traction," Piper said.
"There is a huge amount of growth that we haven't  even tapped into yet."
Piper said he is not worried about ICE's recent success.
The Atlanta-based  exchange recently took over London's International Petroleum Exchange and  plans to transfer its open-outcry business online, significantly boosting its  trade volumes.
"Maybe six to 12 months from now, the story might be a lot different," Piper  said.
"But right now, there is room for the both of us."
He added that Enron traders do not shy away from trading on ICE.
Many of the  energy giants that founded ICE and provide most of its liquidity are also  Enron's biggest clients.
"Enron will seek out a good deal on ICE when there is one," Piper said.
INNOVATION KEY TO SUCCESS  Recognized as one of the most innovative companies in the United States,  Enron is constantly evaluating its position in the market and thinking of  ways to become more successful.
"The right thing to do in November 1999 was to launch EnronOnline," Piper  said.
"But we look at it every day and if it made sense to do something  different, you can bet that Enron would do it and we wouldn't be emotional  about it."
One of the company's advantages is the fact that its software is a flexible  application that allows EnronOnline to easily go in an out of different  markets and regions.
It constantly adds new products to its trading arsenal.
But Piper said that EnronOnline has no plans to turn itself in a many-to-many  exchange.
"We want to focus in providing our markets to others," he said.
"In the near  term, we're not changing that."
The company is considering licensing the application itself, but would not  elaborate on who wants it and how much Enron would ask for it.
EnronOnline has been so successful that even its competitors take their hats  off.
"I've been hearing for two years now that a one-to-many exchange wouldn't  work, but Enron just keeps proving people wrong," said Frank Getman, chief  executive of online energy exchange HoustonStreet.
"If you're willing to make tight two-way markets and be the best price in the  market, then people will continue to use your site."
Enron's stock rose 41 cents to $49.53 a share on Tuesday in trading on the  New York Stock Exchange.
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