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.

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.

Market Regulation Compliance Report Cards

Rule Filing Status As Of July 7, 1999

NASD Rule Filing Status

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.