NASD Notice to Members 99-13 - January 1999

NASD Alerts Members to Year 2000 Mandatory Testing Activities

Executive Summary

On December 3, 1998, the Securities and Exchange Commission (SEC) approved NASD Rule 3410 (Rule or Year 2000 Mandatory Testing Rule), which "establish[es] the NASD's specific authority to require certain members to participate in Year 2000 tests and to require reporting on the tests."

The National Association of Securities Dealers, Inc. (NASD(r)) is mandating Year 2000 testing to ensure that all NASD member firms have completed appropriate levels of testing in the interests of investor protection and market integrity. The Year 2000 Mandatory Testing Program is designed to mitigate the risk of disruptions on and after January 1, 2000.

The purpose of this Notice is to alert NASD member firms about the mandatory testing requirements, to help members locate further information about specific testing requirements, and to answer some frequently asked questions about Year 2000 testing. A list of frequently asked questions is included at the end of this Notice.

Questions concerning this Notice may be directed to the NASD Year 2000 Program Office at (888) 227-1330.