President’s Year 2000 Council, SEC, NYSE, NASD, ICI, SIA Outline Securities Industry Efforts For Smooth Transition Into Year 2000

The President's Council on
Year 2000 Conversion, the Securities and Exchange Commission
(SEC), the National Association of Securities Dealers
(NASD), the New York Stock Exchange (NYSE), the Investment
Company Institute (ICI), and the Securities Industry
Association (SIA) joined today in outlining the extensive
steps undertaken by Wall Street, the mutual fund industry,
and regulators to ensure that it will be "business as usual"
when the year 2000 arrives.

"The securities industry has been a leader in the United
States in preparing for the Year 2000 date change," said
John A. Koskinen, chair of the President's Council on Year
2000 Conversion. "The industry has successfully tested and
re-tested its systems for Y2K compliance so that it is well-
positioned to continue to provide investors with reliable
service into the new millennium."

Securities and Exchange Commission Chairman Arthur Levitt
said, "I am pleased to announce that all of the Commission's
mission critical and non-mission critical computer systems
have been remediated, tested and are now Year 2000
compliant. This is a testament to the dedicated efforts of
a number of SEC employees. As we enter the home stretch to
the Year 2000, investors can rest assured that the SEC is
prepared for the new millennium. Also, I commend the
industry for being resolute in its commitment to thoroughly
prepare for the millennium date change. This process has
demonstrated that protecting investors and maintaining
market integrity are the securities industry's top
priorities."

"From the time any one of 70 million American investors
sends an order to our marketplace to the point when that
trade is settled, every link in that sequence has to be Y2K-
compatible. Investor confidence in our markets depends on
it," said NYSE Chairman and CEO Richard A. Grasso. "The
NYSE, together with our technology partners at the
Securities Industry Automation Corp., has worked diligently
with the industry and with SEC and Congressional oversight
to ensure, from both an operational and regulatory
perspective, that investors and issuers have reliable and
continuous access to the marketplace during this
transition."

"A top priority over the past several years has been to
educate the 5,000-plus member-firms of the National
Association of Securities Dealers about the importance of
Year 2000 readiness, and we have monitored our membership
closely to ensure compliance," said Frank G. Zarb, NASD
chairman and CEO. "We've also worked hard to make sure that
the internal systems of the Nasdaq Stock Market and American
Stock Exchange are up to the challenge of the Year 2000
transition. We feel confident that the integrity of our
markets will be preserved and the investor will be
protected."

"The mutual fund industry has devoted substantial effort to
resolving Year 2000 issues in order to maintain investor
confidence. The industry has been deeply involved in cross-
industry compliance, testing, and information sharing. In
addition, on January 1, 2000 and beyond, mutual fund
investors and assets will continue to be protected by the
unique and stringent regulatory requirements of the
Investment Company Act of 1940," said ICI President Matthew
P. Fink.

"We are confident that trading activity will continue
uninterrupted in the New Year," said Marc E. Lackritz, SIA's
president. "During the last two years, securities firms,
markets, and financial utilities have been checking,
testing, and rechecking their computer systems to be ready
for New Year's Day 2000. We also believe in planning for
the unforeseen. Thousands of industry volunteers are
developing comprehensive contingency plans, which include
creating a coordination and communications center for the
financial services industry and task forces to respond
immediately should problems occur. For investors, our
message is simple: Your accounts will remain safe and
sound."

As part of their efforts to educate investors, the
President's Council, SEC, NASD, ICI and SIA developed a
"Year 2000 Investor Kit." The kit will help investors
prepare for the Year 2000 and includes tips such as:

* Keep good records (an idea that makes good sense at any
time);

* Stay informed about what their financial service
providers are doing to become Y2K ready;

* Obtain any Year 2000 literature provided by their
broker/dealers, mutual funds, investment advisers or public
companies they hold stock in;

* Invest for the long term and avoid changing their
trading habits;

* Not worry about obtaining stock certificates; and,

* Check the Y2K readiness of their personal computers.

The kit also features a concise review of industry efforts
to prevent Y2K computer problems; a list of frequently asked
questions for investors; a Year 2000 checklist; and
information on how to check personal computers and fax
machines for potential Y2K problems.

The public can access the "Year 2000 Investor Kit" through
the NASD Web site:

http://www.nasdr.com/3600_inv_kit.htm

Printed copies are available by calling 1-888-227-1330 or
sending an email to [email protected]. The kits have also been
provided to securities firms for distribution to their
clients.

Investors can check on the Y2K preparedness of broker-
dealers, mutual funds, and investment advisors on the SEC
Web site at: http://www.sec.gov/news/y2k/y2kreps.htm.