July 1999

Year 2000: Will Your Firm Be Compliant?

Recognizing the importance of ensuring the Year 2000 readiness of the securities industry, the Securities and Exchange Commission (SEC) has taken key steps to encourage active compliance efforts by broker/dealers. The first of these actions required broker/dealers to submit two Form BD-Y2K progress reports under Rule 17a-5 of the Securities and Exchange Act of 1934. These progress reports were generally intended to:

Registration Fee Changes

Registration fees have changed recently in the following jurisdictions: Utah, the Chicago Board of Options Exchange, North Dakota, and Nebraska. These registration fees are processed through the Central Registration Depository (CRD^SM) and the changes went into effect on July 1, 1999.

Utah

August 1999

Broker/Dealer Day Zero Preparation

Over the weekend of January 1 and 2, 2000, broker/dealers will begin assessing the need to invoke their written contingency or disaster recovery plans. These plans should reflect potential scenarios that could be encountered duringthis unique transition. Firms will implement contingency and disaster recovery plans to the degree necessary to ensure a continuation of those business functions critical to maintain business as usual in the event of Year 2000-related problems.

Comment Period Extended

The Request for Comment period for Notice to Members 99-54 has been extended until August 31, 1999, to give all interested parties, including those who may be focusing on issues relating to the deployment of Web CRD, a meaningful opportunity to comment.

Year 2000 Countdown

Y2K Testing Not Required For Legacy CRD And PC FOCUS

Due to the availability of the new Web Central Registration Depository (CRD^SM) system and Web-Based FOCUS filing system, the National Association of Securities Dealers, Inc. (NASD^®) does not require Year 2000 testing of their predecessor systems - Legacy CRD and PC FOCUS^SM. The new systems - Web CRD and Web-Based FOCUS - have successfully completed Year 2000 testing.

October 1999

Contingency Planning Activities

November 1999

Are You Ready For The Year 2000?

December 1999

SEC—Year 2000 Recordkeeping Rule

Effective August 31, 1999, the Securities and Exchange Commission (SEC) adopted SEC Rule 17a-9T (the Rule) relative to Year 2000. The Rule, which was originally proposed in March 1999, is intended to assist broker/dealers, the SEC, self-regulatory organizations (SROs), and the Securities Investor Protection Corporation (SIPC) in identifying all securities positions carried by a broker/dealer and the location of the securities in the event that a broker/dealer experiences Year 2000 problems.

Electronic Refiling And Payment Reminders

Form BD Refile- Deadline: Dec. 15, 1999