Chairman Lugar, Senator Harkin, and Members of the Committee, I am honored to appear before you today as the President's nominee to be a Commissioner at the Commodity Futures Trading Commission.  I thank President Clinton for the privilege of being nominated to this position of public service, and I thank Senator Tom Daschle and Senator Tim Johnson for supporting my nomination.

I am pleased to have my wife Nancy here today with one of our two children:  Patrick, who is nearly 5.  Our daughter Drew, who is 9 months old, is at home.

As many former Commissioners have said, the CFTC is a small agency with a very important mission.  The Commission plays an important role in federal oversight of the financial markets and as such I do not take the public's trust lightly.  The Commission's statutory mission is to protect market users and the public from fraud, manipulation and abusive trade practices and to foster open, competitive and financially sound futures and option markets.  If confirmed, I pledge to work closely with the other Commissioners at the Commodity Futures Trading Commission, with members of the regulated industry and with other interested members of the public in fashioning a regulatory response to each matter in a manner that is timely, responsive to the market and mindful of the public interest.

I believe that my educational and professional experiences are well suited to preparing me for the challenges of being a Commissioner at the CFTC.  A native of Sioux Falls, South Dakota, I received a first rate education from the public school system, where my father was a teacher and administrator for 42 years.  I received a Bachelor of Arts degree in Government and International Affairs from Augustana College in Sioux Falls, and a Juris Doctor from the University of South Dakota's School of Law.

Following graduation from law school I had the pleasure to work for Senator Tom Daschle, where I was first introduced to the world of risk management and the CFTC.  Three years later, I joined the National Grain Trade Council as assistant to the president and legal counsel.  The Council is a national trade association that represents futures exchanges and futures market participants and it was there that I quickly learned the critical importance of futures, options, and other derivatives in the U.S. and global economies.

Over the past decade there have been many innovations in the derivatives markets.  These changes have highlighted competitive issues and public policy concerns.  It is at the intersection of these market changes and policy considerations where I have spent much of my professional career.  In addition to developing an understanding of the issues raised relating to oversight by the CFTC, I also developed some knowledge of issues relating to tax considerations, accounting standards, and bankruptcy concerns for derivatives transactions and firms that participate in those markets.  Perhaps the issue that was most influential in shaping my perspectives of derivatives markets was the tax issue known commonly as Arkansas Best.  During my tenure at the National Grain Trade Council I had the privilege of coordinating the efforts of a broad-based coalition that included approximately 100 organizations, corporations and firms representing agricultural, energy, transportation, manufacturing and financial interests.  The coalition was instrumental in restoring the tradition of ordinary tax treatment for the gains and losses stemming from hedging transactions.

More recently, I have served as the director of the CFTC's Office of Legislative and Intergovernmental Affairs.  During these last two years, I have had the good fortune to work for several former and current Commissioners who epitomize public service - they are diligent and committed, seeking only the reward of a job well done.  I can commit only to emulate their examples of integrity and independence.  Similarly, I have found the staff of the Commission to be of the highest quality and the federal government benefits greatly from their commitment and expertise.

I consider myself to be fortunate.  The diversity of opportunity I have had has given me access to some of the best teachers one could wish for on issues surrounding futures, options and other derivatives.  If confirmed by this Committee and the Senate, I plan to draw from each of these experiences in carrying out the responsibilities of a Commissioner and public servant.

Thank you.  I look forward to answering any questions that you may have for me.