Executive Summary

January 1999

Contingency Planning

Wire Transfer Of Corporate Financing Fees

The Corporate Financing Department of NASD Regulation, Inc. (NASD Regulation^SM) will now accept the payment of the Corporate Financing filingfee by wire transfer. (The Department will continue to accept checks or money orders, too.) To obtain the necessary information for wire transfers, please contact the Compliance Unit of the Corporate Financing Department at (202) 974-2700.

February 1999

Year 2000 Legal Update

As we rapidly approach the Year 2000, there are some legal issues that all member firms should consider. Following is important information on disclosure requirements.

Rule Filing Status As Of March 4, 1999

NASD Rule Filing Status

March 1999

Deadline For Completion Of Form BD-Y2K Is Near

The National Association of Securities Dealers, Inc. (NASD^®) recently mailed a Form BD-Y2K package to each member firm for completion by April 30, 1999.

Amendments To Guidelines Regarding California Arbitration Proceedings

Information in NASD Notice to Members 99-10 (February), which applies to NASD Regulation, Inc. (NASD Regulation^SM) arbitration proceedings in California, and governs the activities of non-California attorneys, has been amended and should be reviewed by anyone participating in a California arbitration proceeding. The original Guidelines became effective on January 1, 1999.

April 1999

How Broker/Dealers Can Address Customer Concerns About The Year 2000

Investors are aware of the potential problems caused by the coming century change. As a result, they may consider changing their investing habits and strategies leading to more frequent questioning of their brokerage firms about the Year 2000 issue.

Member Firms Now May Submit EDGAR Documents On Computer Disks To Meet The Information Requirements Of SEC Rule 15c2-11 And NASD Marketplace Rule 6740

May 1999

Internal Testing And Contingency Planning

Internal Testing

No matter the size of your firm—two people, 200, or 20,000-you should be mindful of potential Year 2000 challenges. Internal testing of all systems, especially those that are mission critical, should now be in progress or completed.