THURSDAY, FEBRUARY 25TH AT 1:00PM:

     I.   Introduction – Leadership of House and Senate Agriculture Committees
                Opening Statement by Senate Agriculture Committee Chairman Richard Lugar
                 U.S. Senator for Indiana(1:30pm)

     II.  Overview of  the Derivatives Markets

               A.   The Derivative Products
                         1.   Forward Contracts
                         2.   Futures
                         3.   Options
                         4.   Swaps
                         5.   Agricultural Instruments
                         6.   Hybrids

               B.   Users of Derivatives
                         1.   Who are they?
                         2.   What are their objectives?

               C.   The Derivatives Markets
                         1.   Comparison of exchange traded and OTC markets
                         2.   What are the characteristics of these markets?

               D.   Recent Changes in Derivatives Markets
                         1.   Technological Changes
                         2.   Characteristics of Users
                         3.   Uses of Derivatives

     III. Overview of the Regulatory Status of Derivatives (2:30pm)
               A.   Exchange Traded Products
                         1.   What are the major policy objectives? --market integrity, financial
                                safety and soundness, customer protection, etc?
                         2.   Has the policy objectives in the regulation of exchange traded
                               derivatives changed?
                         3.   What are the most effective means of attaining these policy
                                objectives (government mandate, self regulatory organizations, and
                                self policing)?
 

               B.   OTC Products
                         1.   What is the relevance of these same policy objectives for OTC
                                products?
                         2.   Do OTC products differ from exchange traded products?  If so,
                               should they receive different regulatory treatment?
                         3.   How are OTC products currently regulated and what impact has
                               existing regulation had on OTC derivatives transactions?
                         4.   How has market discipline shaped the OTC market?

    3:30pm     BREAK

     IV.  Current Issues (3:45pm)
               A.   Impact of Technology/Changing Business Environment
                         1.   Effect of technology on roles of exchanges, clearing entities,
                                intermediaries, end users, OTC dealers and regulators

                         2.   How has technology changed the policy debate regarding:
                                   a.   Definition of Exchange
                                   b.   Price transparency
                                   c.   Clearing
                                   d.   Market integrity

                         3.   Effect of technology on the underlying policy objectives

                         4.   Effect of technology on how policy objectives should be achieved

                         5.   Forecast for the future of OTC and exchange traded derivatives

                         6.   Overview of recent transactions, alliances, mergers, and product
                                innovations
 

FRIDAY FEBRUARY 26TH AT 9:00 AM
               B.   Financial Integrity/Systemic Risk Issues
                         1.   Financial Integrity of Intermediaries
                                   a.   What are the risks for intermediaries in transacting in
                                          derivatives? –credit risk, market risk, operational risk, etc.

                                   b.   How do exchanges, clearinghouses, and OTC participants
                                         deal with these risks?

                                   c.   What lessons have been learned from the recent market
                                          developments?

                         2.   Systemic Risk
                                   a.   Define systemic risk
                                   b.   Effect of derivatives on systemic risk
                                   c.   Exchange traded derivatives vs. OTC derivatives
                                   d.   Legal certainty
                                   e.   Clearing organizations
                                   f.   Effect of hedge funds on systemic risk.
                                   g.   Regulation’s impact on reducing systemic risk?  Is it
                                         possible and at what cost?
                                   h.   Is there a need for international/domestic coordination
                                         among  regulators?  Does it help?  How much is needed?

               C.   Market Integrity (10:00am)
                         1.   What are the policies behind the prohibition of futures on individual
                                securities or narrow based indices?  Financial integrity? Customer
                                protection?  Should this issue be revisited?

                         2.   What policies justify the regulatory approval of new products?
                               What has been the effect of this requirement on innovation?

                         3.   Why should all futures trade on an exchange?  What is the rationale
                                for current requirement?  What would be the effect of permitting
                               “upstairs trading”?  Would this inhibit the price discovery function
                               of the markets?

                         4.   What is the policy rationale that all futures contracts be regulated in
                                same manner?  Regulatory parity for competing markets?

  11:00 am         BREAK

               D.   Customer Protection (11:15am)
                         1.   Rationale for rules governing exchange traded derivatives
                                   a.   changes to customer base
                                   b.   multi-tiered regulatory approach (adjusting regulatory
                                         treatment to the different products and types of customers)
                                   c.   approach followed in other jurisdictions

                         2.   Treasury Amendment and similar issues
                                   a.   impact on retail customers
                                   b.   historic rationale
                                   c.   regulatory parity issues

     V.   Other Issues (12:00pm)
               A.   Pilot program for agricultural trade options
               B.   Impact of regulatory approach on competitiveness of U.S.  financial
                      services industry, domestically and internationally
               C.   Evaluation of current regulatory structure
                         1.   trends in other foreign jurisdictions
                         2.   burdens created by multiple regulators
                         3.   benefits of current structure

     VI.  Concluding Remarks