Securities Industry and Regulators Assure Investors About Y2K
(December 27, 1999) The heads of several securities industry groups and the head of the SEC met on December 27 to assure investors that the integrity of the markets will be preserved on the first trading day in the Year 2000.
The gathering included Arthur Levitt, Chairman of the Securities and Exchange Commission, Frank Zarb, Chairman of the NASD, Richard Grasso, Chairman of the NYSE, Marc Lackritz, President of the SIA, Matthew Fink, President of the ICI, and John Koskinen, Chairman of the President's Council on Year 2000.
| Related Story: SEC and Securities Industry Say Y2K Will Be Business As Usual, 9/7/99. |
The same group of securities industry leaders met in September to deliver essentially the same message.
"Preparation for Year 2000 has been a top priority for the Nasdaq Stock Market, the American Stock Exchange, and NASD Regulation throughout 1999 and before," said Frank Zarb, NASD Chairman and CEO. "Our efforts have focused not only on fixing our systems, but also assisting our member-firms in getting ready. I am confident that the integrity of our markets will be preserved."
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| Arthur Levitt |
"The financial services industry has a strong commitment to protecting investors' interests and maintaining the integrity of the markets," said SEC Chairman Arthur Levitt. "I am confident that the goal of 'business as usual' on January 3 will be realized."
"Preparation for the Year 2000 has been the largest technology project undertaken by the securities industry," said Marc Lackritz, President of the SIA. "Thanks to the efforts of thousands of industry professionals who volunteered their time, we successfully tested Wall Street's systems earlier this year. We are now planning for any unforeseen incidents that may occur, and will have the resources in place over the weekend to ensure that we can respond immediately to them."
However, while industry leaders made grand assurances, they also cautioned investors to keep good records, just in case.
In a related matter, the Nasdaq Stock Market announced on December 27, that, as part of its Y2K implementation plan, Nasdaq will not make data changes for equity and debt issues and market participants on the Nasdaq system from Monday, December 27, 1999, through January 3, 2000.
"This data freeze will be imposed to minimize activity in the system during the brief transition period to the new year," said Gregor Bailar, EVP and CIO of NASD, in a press release. "For us, there’s no such thing as being over-prepared."
Among the updates that will not be done during the freeze are the following:
The Nasdaq Stock Market is a subsidiary of the National Association of
Securities Dealers (NASD).