A 4792 - June 30, 1998
P&S 4354

TO: ALL PARTICIPANTS

ATTENTION:  MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; MANAGER CUSTOMER ACCOUNT TRANSFER DEPARTMENT; MANAGER MARGIN DEPARTMENT; MANAGER DATA PROCESSING DEPARTMENT; MANAGER MUTUAL FUNDS OPERATIONS; MANAGER CASHIERS DEPARTMENT

SUBJECT: ACATS and ACATS Fund/SERV REDESIGN - SCHEDULE MODIFICATIONS

NSCC is revising some of the dates associated with the conversion to the redesigned ACATS and ACATS Fund/SERV systems. A summary of those date changes follow:

IMPLEMENTATION DATE

Subject to SEC approval, the new conversion date is Friday, January 22, 1999. This will be the last day for participants to input data into the current ACATS and ACATS Fund/SERV systems. Beginning, Monday, January 25, 1999, all participant data submitted to and received from ACATS and ACATS Fund/SERV will be in the redesigned ACATS formats.

ACATS FUND/SERV LINK - MUTUAL FUND PARTICIPANTS

For Mutual Funds participating in the ACATS Fund/SERV link, the original implementation date will continue to be Monday, November 16, 1998. NSCC will convert to the new Fund/SERV formats for ACATS transactions on this date for the files sent to and received from the mutual funds. The new fields in these formats, which are not being used by the current ACATS Fund/SERV link, will be left blank until the redesigned ACATS system is implemented. The last day for mutual funds to submit the existing Fund/SERV formats for ACATS transactions will remain on schedule for Friday, November 13, 1998. A separate Important Notice will be forthcoming with details for the Mutual Fund industry regarding testing and implementation.

PARTICIPANT SYSTEM TEST

Participant testing of the redesigned ACATS system will begin on Monday, November 16, 1998. A ten (10) week testing period will begin at this time, with all participants expected to submit input and receive corresponding output.

PRE-FORMATTED TEST FILES and REPORTS

NSCC will provide pre-formatted files and reports beginning Friday, July 31, 1998 and until the beginning of participant testing in November 1998. Participants are strongly encouraged to test output files prior to the full system test in November.

FORMAT TESTING OF PARTICIPANT INPUT FILES

Since June 23rd, participants have been able to submit test input files to NSCC for format testing. NSCC will continue to accept and analyze test input files submitted by participants until participant testing in November.

Individuals with any questions on these changes may call either their NSCC Account Manager or the undersigned at (212) 412-8686.

Edlyn Meringolo
Vice President, Systems