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Year 2000 Update (October)

October 1999

Contingency Planning Activities

Although most businesses have worked, and are continuing to work, diligently to ensure that their Year 2000-related issues will be resolved in time, everyone must anticipate that some things may be overlooked, ignored, or not completed on or before December 31, 1999. In addition, businesses should consider events beyond their control that could impact various entities in 2000. One important way to be prepared is through the development and execution of a well-defined and tested contingency plan-meaning having an alternate means of recovering from mission-critical Year 2000 failures.

Contingency plans are never final. It is important to test and revise your plan, detailing results and preparing business contingency operations throughout the remainder of 1999. Since your plan will include information not only about your firm's preparedness, but the preparedness of other entities external to your organization, your plan must continually assess for possible changes in status. For example, contingency plans should include alternatives in the event that scheduled software releases or additional product retirements are changed by your vendors.

Many firms have requested copies of contingency plans of key business partners. In that regard, the National Association of Securities Dealers, Inc. (NASD®) is developing a contingency action matrix for all business partners. This matrix will include NASD systems, failure events, impact, and suggested actions by members. This information is expected to be completed and posted on the Year 2000 Web Pages of the NASD and NASD Regulation, Inc. (NASD RegulationSM) Web Sites (www.nasd.com and www.nasdr.com) by November 15, 1999.

It is also important that your firm have plans in place to provide any mandated reports to the NASD (such as the Millennium Transition Questionnaire).1 Even if your firm is not mandated to complete these reports, you will want to check the NASD's Year 2000 Web Pages for information. The Web Pages will also contain links to other relevant industry status reports.

1 This questionnaire is provided by the Securities and Exchange Commission, which the NASD and other designated examining authorities will require selected clearing and market-making firms to complete at scheduled times throughout the transition period of December 29, 1999 - January 7, 2000.

NASD Readiness Initiative

The NASD Year 2000 Readiness Program will allow members to display a Year 2000 readiness statement on the NASD and NASDR Web Sites (www.nasd.com and www.nasdr.com, respectively). These letters are intended to provide information that will serve to assure the investing public of their broker/dealers' ability to handle Year 2000 problems and keep their money and assets safe. Visitors to the Year 2000 Web Pages on these Web Sites will be able to search by firm name or broker/dealer number. This is a voluntary effort.

The program guidelines and a letter template were distributed last month and are available on the NASD Year 2000 Web Pages. The NASD Year 2000 Program Office has already collected over 100 letters that will be published next month. It is not too late for your firm to submit information. While most firms have used the template provided by the NASD, many firms have included:

  • Details on the completion of major milestone dates.


  • Firm contact information to address Year 2000 inquiries.


  • Internet site addresses to view the particular firm's Year 2000 readiness efforts in more detail.

Please send your readiness information to:
National Association of Securities Dealers, Inc.
15201 Diamondback Drive
Rockville, MD 20850
ATTN: Y2K Program Office

If you have questions regarding any of these or other issues, please contact the NASD Year 2000 Program Office by e-mail at y2k@nasd.com or by calling our toll-free number at (888) 227-1330.

Year 2000 Education And Events

The NASD Year 2000 Program Office is continuing to offer Virtual Workshops—conference call-in sessions. The NASD strongly encourages registration for these sessions by calling (888) 567-0578. After placing the call, listen to the greeting, and provide the following information when prompted: firm name, Broker/Dealer #, and workshop date. On the day of the session, call (800) 857-7323 and indicate the password and confirmation number provided for the specific workshop. See below for a list of these specific workshops organized by date of session, as well as a brief summary of the issues to be discussed.

OCTOBER

October 19   State of the Securities Industry

Password: Industry

Conf. #: 3117632

Issues to be covered:

  • Industry summary and overview


  • A look at clearing firms


  • A look at Market Makers


  • A look at introducing firms


  • In-depth look at where your firm should be in achieving Year 2000 readiness

October 26   Legal Review for Broker/Dealers

Password: Review

Conf. #: 3117647

Issues to be covered:

  • A review of legal issues for 1998 and 1999


  • Current broker/dealer trends reviewed


  • Checklist of what your firm may need to do with the little time remaining

NOVEMBER

November 2   Day Zero Preparations

Password: Day Zero

Conf #: 3117656

Issues to be covered:

  • Day zero scenarios - the new year


  • Broker/dealer strategic scenarios


  • Helpful hints on day zero

November 10   Contingency Planning and Reporting Requirements

Password: Trends

Conf. #: 3117664

Issues to be covered:

  • Developments in contingency planning trends


  • Step-by-step guide to completing mandatory reporting to the SROs during the transition timeframes


  • Global view

November 17   Contingency Planning and Reporting Requirements

Password: Trends

Conf. #: 3117677

Issues to be covered:

  • Developments in contingency planning trends


  • Step-by-step guide to completing mandatory reporting to the SROs during the transition timeframes


  • Global view

DECEMBER

December 9   Day Zero Preparations

Password: Day Zero

Conf. #: 3117691

Issues to be covered:

  • Day zero scenarios—the new year


  • Broker/dealer strategic scenarios


  • Helpful hints on day zero

December 14   Beyond Year 2000

Password: Beyond

Conf. #: 3117699

Issues to be covered:

  • The Millennium—Doing business summary


  • Resources


  • Record retention and maintenance issues

NASD Year 2000 Event Calendar

Topic Location Date Time
State of the Securities Industry Virtual Oct. 19 11:00 a.m., ET
Legal Review for Broker/Dealers Virtual Oct. 26 11:00 a.m., ET
Day Zero Preparations Virtual Nov. 2 11:00 a.m., ET
Contingency Planning and Reporting Requirements Virtual Nov. 10 11:00 a.m., ET
Contingency Planning and Reporting Requirements Virtual Nov. 17 11:00 a.m., ET
Day Zero Preparations Virtual Dec. 9 11:00 a.m., ET
Beyond Year 2000 Virtual Dec. 14 11:00 a.m., ET

Securities Industry Association Y2K Web Site

To access all areas of the SIA's Year 2000 Contingency Planning Web Site, firms must first register as a user of this Web Site. To register, follow these steps:

  • Go to the SIA Year 2000 Contingency Planning Web Site (www.siay2k.com/contingency).


  • Under registration, click on Information.


  • Scroll down to New Registrants, click on Registration Request.


  • Complete steps 1, 2, and 3.

The SIA will contact firms with their registration information. For help registering, call the SIA at (888) Y2K-4SIA.

More Information/Questions

NASD Year 2000 Program Office
e-mail: y2k@nasd.com
phone: (888) 227-1330

or visit the...

Year 2000 Web Pages:

www.nasd.com

or

www.nasdr.com


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