Year 2000 Update Reminder To Members About SEC Filing Requirements

The Securities and Exchange Commission (SEC) recently amended its Rule 17a-5 to require all broker/dealers to file two reports concerning Year 2000, using Form BD-Y2K (Form). All members received this information available through NASD Special Notice to Members 98-63.

SEC Reporting Requirement

In July of this year, the National Association of Securities Dealers, Inc. (NASD^®) issued Special Notice to Members 98-63alerting members to a new reporting requirement imposed by an amendment to Securities and Exchange Commission (SEC) Rule 17a-5. The SEC rule amendment requires broker/dealers to file two Year 2000 reports using the new BD-Y2K Form. The first report was due to the SEC and designated examining authority (DEA) on or before August 31, 1998. The second report is due April 30, 1999.

OATS Update

IMPORTANT! Non-Market Makers in Nasdaq securities are NOT required to submit an Order Audit Trail System^SM (OATS^SM) Subscriber Initiation and Registration Form to the NASD until after January 1999. Only Market Makers in Nasdaq securities and ECNs were required to submit the Form by September 14, 1998.

November 1998

Mandatory Testing

The Annual Meeting of members of the National Association of Securities Dealers, Inc. ( NASD^®) will be held on December 21, 1998, at 9:30 a.m., at the Carlton Hotel, 16th & K Sts. N.W., Washington, D. C.

The items of business to be considered at the Annual Meeting are:

Executive Summary

December 1998

SEC 1999 BD-Y2K Independent Public Accountant's Report

Treasury Makes New Mailing Lists Available Via The Internet

Recently, the U.S. Department of Treasury (Treasury) allowed interestedparties to sign up for the followingtwo new mailing list notificationpages via the Bureau of the PublicDebt's Web site:

Executive Summary

January 1999

Contingency Planning