I. Required Testing

In conjunction with regulators and the NSCC Board of Directors, NSCC has required firms to demonstrate Year 2000 compliance. Under this definition, any NSCC participant who maintains a direct computer connection to NSCC will be required to test Year 2000 readiness. That readiness will be tested during the SIA’s Industry-wide test in March 1999 and with NSCC in tests as detailed below.

While we are still completing the final details for required testing, all firms should initiate the testing process now if they have not already begun. There can be up to three levels of preparatory testing required with NSCC, depending upon a firm’s plans to use six or eight-digit dates. Those levels are Format testing, Connectivity testing and Point-to-Point testing. A fourth type of testing, Extended Point-to-Point is strongly encouraged by NSCC. Details on each type of testing and the requirements for each are detailed below. Participants should call the NSCC Year 2000 Participant Testing Group (PTG) at (212) 412-8505 for specific setup instructions and any additional information or answers they require about Year 2000 testing.

II. Format Testing

Format testing is required only for those participants who will be converting their internal systems to handle an eight-digit date format and require their AutoRoute and Datatrak reports to conform to that format. Firms may elect to adopt an eight-digit date format for some or all of their NSCC applications. Format testing began in April 1997 and will close at the end of this year.

Any participant who does not complete format testing by year-end will be required to remain with the current six-digit date format, although even that six-digit format must be able to recognize "00" as the Year 2000. (Please refer to Important Notice A4822, P&S 4386 dated September 10, 1998 for additional details.)

Participants who elect to continue to use six-digit date formats for their AutoRoute and Datatrak reports do not need to conduct format testing with NSCC.

III. Connectivity Testing

This test is required for all participants with direct computer connections to NSCC. The test establishes that participants can successfully transmit data to and receive data from NSCC’s Y2K test environment. The test requires that firms transmit an empty file (called a "ping") to NSCC. Prior to conducting their connectivity test, firms must implement a Y2K-compliant communications protocol and ensure that all their internal system upgrades are completed and tested.

Participants are required to follow these steps to establish communication connectivity:

• Contact the PTG at (212) 412-8505 to arrange a test
• Participants can use either existing production lines or set up new communications test lines with NSCC
• Connectivity tests can be conducted any day of the business week
• Five business days’ notice is required prior to conducting a test
• To initiate testing, participants must complete the SIAC/SDC Year 2000 testing form in the Connectivity Guide (attached to this notice) and fax it back to: (212) 335-0381, Attention: Laura Clinton, Network Operations Area (NOA).
• NOA will work with the participant until a successful test is completed
• A successful connection means that a participant’s Y2K compliant system (test or production) can establish communications with NSCC’s Y2K compliant system

NSCC strongly urges participants to arrange a connectivity test as soon as possible. There are a large number of firms that need to test, and the earlier a firm can test, the more likely firms will be able to uncover and correct any problems quickly. Arrangements to conduct a connectivity test should be made no later than November 30, 1998. Connectivity testing must be completed before Point-to-Point testing can begin.

IV. Point-to-Point Testing

Point-to-Point testing is required for all NSCC participants who have a direct computer connection. This testing involves the submission of a limited number of transactions from the participant to NSCC, which NSCC will process and then provide appropriate output back to the participant, all in a Y2K environment. Point-to-point testing establishes that a participant can process application files to and from NSCC using Year 2000 dates.

The product areas tested in NSCC’s point-to-point tests are: Equities, Fixed Income and Mutual Funds. To initiate point-to-point testing, firms need to submit a completed and approved profile of applications to be tested. A profile of available applications currently being used by your firm can be obtained from the PTG. Firms should request their profiles immediately, even if they are not currently ready to test. Obtaining the profile early will allow firms to thoroughly review their applications and schedule when they want to test them.

To participate in point-to-point testing, participants must:

• Ensure that connectivity testing has been successfully completed
• Contact the PTG at (212) 412-8505 to obtain a profile of their existing production applications
• Review the profile information and indicate in the appropriate column the application inputs and outputs to be tested. You should also verify all other information (e.g., originator, destination ID, protocol, etc.) and make changes where necessary
• Fax the profile information back to (212) 383-5433, Attn: PTG, at least seven business days prior to test day. Only files approved in your profile will be tested, so review the form carefully prior to returning to the PTG to ensure that all necessary information is correct.
• Submit to Datatrak either scripted or non-scripted transactions, using a date of January 3, 2000 (be sure to use the appropriate Datatrak header date.) Note: SYSIDs 18601 (OTC Comp.) and 03461 (Corr. Clear Late) must have a January 4, 2000 date on the Datatrak header.
• Be aware that there are changes to naming standards that will be used to route data to and from NSCC’s Y2K environment. Any questions on those standards should be directed to the PTG.
• Receive files from Autoroute and verify proper routing and correct destination of the NSCC output file.

Participants should contact the PTG no later than November 30, 1998 to schedule point-to-point testing. All participants must complete such testing by January 31, 1999. February will be reserved to handle any outstanding issues from previous tests. The number of participants that can be tested each testing day will be limited; therefore, it is critical to schedule your testing as early as possible.

Though the profile contains all of the products that a firm currently uses in production, NSCC may only require that some of those applications be tested for Y2K compliance. Participants may elect to conduct tests on their applications in whatever sequence they choose.

Certain applications, such as the Fund/SERV and Networking products, require that participants have a test partner. Broker dealers and funds are urged to establish testing relationships and schedule testing accordingly. NSCC will assist those firms who are unable to find a testing partner.

In December, NSCC will make available an omnibus capability to firms during point-to-point tests for equity and fixed income products. NSCC will serve as the contra-side to submissions of equity and fixed income transactions. Full details of this process will be provided in a future Important Notice.

V. Extended Point-to-Point Testing

Beginning in November, NSCC, in conjunction with most exchanges and utilities, will offer a series of one-day, extended point-to-point tests. These tests, to be held on the second Saturday of each month between now and March, will allow participants to test with multiple exchanges and utilities on the same day. Participants will need to coordinate their participation in these tests with each exchange or utility they wish to test with. Extended point-to-point testing is not required by NSCC, but is available to participants who wish to test trading and clearance cycles prior to the Industry-wide test in March.

The complete testing schedule of point-to-point and extended point-to-point dates is attached.

VI. Additional Information

Connectivity and testing setup is a major component of NSCC’s Year 2000 mandatory testing effort. Participants are strongly encouraged to begin this process now. Year 2000 testing definitions and requirements can be obtained on NSCC’s Year 2000 web site at http://www.y2000.org, under the Y2000 Participant Testing Guide section.

NSCC recognizes the enormous requirements of Year 2000 mandatory testing and is committed to working closely with participants as we prepare for this demonstration of Y2K readiness. Any questions or problems regarding this notice should be directed to NSCC by e-mail through Y2000@nscc.com, or by calling the undersigned at (212) 412-8428. To initiate testing or for any testing-related question, please contact the NSCC Participant Test Group (PTG) at (212) 412-8505.

George Kelly
Vice President, Marketing

NSCC will make the following dates available for participants to schedule and conduct Point-To-Point tests:

SIAC Shared Data Center Year 2000 Test Environment Connectivity Requirements

SIAC’s Shared Data Center (SDC) established a Year 2000 (Y2K) test environment on a separate, isolated LPAR. This LPAR is used as a test bed for all SDC infrastructure testing as well as for application testing that needs a system IPLed with the Year 2000 date.

Below, you will find the naming conventions that must be adhered to in order to connect to the SIAC/SDC test bed system. Please implement the changes applicable to your environment. Please note that NSCC will not support BISYNC (BSC/RJE, BSC/NJE) connectivity for the Y2K testing.

If you participated in the July 1998 beta test all of your set-ups used during that test will remain intact.

The following CICS regions will be running on the Y2K test system:

The following MQ Managers will be running on the Y2K test system:

You need to make the following changes in order to submit your data via DATATRAK:

You need to make the following changes in order to retrieve your data via AUTOROUTE:

SIAC/SDC Year 2000 Testing - Change Request Form

Please fill out and fax this form to (212) 335-0381, attention Laura Clinton (for help call (212) 383-5401)

1. Company Name ____________________________________________________

2. Contact(s) : Name ________________________________________ Tel. _________________

Name ________________________________________ Tel. _________________

Will you require additional/new line(s) for Y2K testing? YES _____. NO ______ go to item 6.

How many new lines? __________ When do you plan to activate the line(s)? _____________________

line #1: Speed __________ Protocol __________ Modem __________ Vendor _____________

line #2: Speed __________ Protocol __________ Modem __________ Vendor _____________

6. Will the current production line need to be upgraded? YES _____ , attach details; NO _____ , make sure the existing line capacity is sufficient to support both production and test traffic with no impact to production

7. Please fill out the following table for SIAC to have access to your Y2K test environment

8. Please fill out the following table for SIAC to have access to your Y2K test CICS applications

Please fill out the "CICS Terminal Request Form" if you need terminal access to SIAC Y2K regions.

SIAC/SDC Year 2000 Testing - CICS Terminal Request Form

Contact: Name ________________________________________ Tel. _________________

Are these terminals defined to SIAC Production Region(s):________

SIAC Application/Region(s) you will be testing with:

____________________, _______________________, ______________________

Terminal Netname(s):

____________________, _______________________, ______________________

____________________, _______________________, ______________________

____________________, _______________________, ______________________

____________________, _______________________, ______________________