A 4857 -
December 3, 1998
P&S 4421
TO: ALL PARTICIPANTS
ATTENTION: MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; DATA PROCESSING MANAGER, MANAGER MUTUAL FUND OPERATIONS, DIRECTOR OF OPERATIONS, YEAR 2000 COORDINATORS
Re: NSCC YEAR 2000 READINESS DISCLOSURESUBJECT: YEAR 2000 ADDITIONAL TESTING FEATURES – OMNIBUS TESTING ACCOUNT
I. NSCC Testing Account Capability
To assist participants in Year 2000 testing, NSCC has created a Year 2000 Testing Omnibus account. When this special account is named as the contra firm on a trade, the submitting firm will be matched automatically. The Year 2000 Testing Omnibus account, clearing firm number 0878, firm symbol YZKK, may be used to test specific transactions in Municipal Bond, Corporate Bond, UIT and OTC Comparison processing.
The 0878 account number is now available for use in Point-To-Point, Extended Point-To-Point and Industry-wide Testing, and can be used by all NSCC participants wishing to receive compared transactions when a contra side is not available for testing. The account can be used with both six and eight digit date NSCC formats. This notice will provide appropriate details for using NSCC’s Year 2000 Testing Omnibus account.
II. Fixed Income - Municipal, Corporate and UIT’s
Following are the Year 2000 Testing Omnibus details for NSCC’s Fixed Income products:
Trade Date Input:
| Product | Datatrak SYSID |
NJE / RJE |
| Municipal | 17600 |
NJE Submitter |
| Municipal | 17607 |
RJE Submitter |
| Corporate/UIT | 17030 |
NJE Submitter |
| Corporate/UIT | 17037 |
RJE Submitter |
The valid transaction type is: Trade Day Input – Code 1
Regular way trades and secondary market new issue trades submitted with a contra clearing participant number of 0878 will trigger the creation of a contra trade. For example, a regular way buy trade submitted with a major broker of 1111 naming 0878 will trigger the creation of a regular way sell trade with a major broker of 0878 naming 1111.
Supplemental Input:
| Product | Datatrak SYSID | NJE / RJE |
| Municipal | 17602 |
NJE Submitter |
| Municipal | 17603 |
RJE Submitter |
| Corporate/UIT | 17441 |
NJE Submitter |
| Corporate/UIT | 17447 |
RJE Submitter |
| The valid transaction types are: | As/Of | Code 5 |
| Demand As/Of | Code 7 | |
| Withhold | Code 8 |
The process for determining if and when to create a contra side is identical to the process established for Trade Date input.
NSCC firms should be reminded that those Fixed Income transactions versus the 0878 account which are submitted to NSCC with contract values will be automatically matched with the submitted contract values.
III. OTC Trade Comparison
The following are the Year 2000 testing Omnibus details for NSCC’s OTC Comparison product:
Trade Date Input:
Product |
Datatrak SYSID |
OTC Comparison |
18601 |
These are two sided transactions for trade date input. The system will automatically generate the contra trade side for any submitted trade record containing the designated testing omnibus account #0878.
Supplemental Input:
Product |
Datatrak SYSID |
| Night of Comparison | 18411 |
| The valid transaction types are: | Added Trade Added Trade Reversal Withhold |
Code 5 (new format only) Code 5 (new format only) with Reversal indicator on Code 8 (old format only) |
The process for determining if and when to create a contra side is identical to the process established for Trade Date input.
Additionally, NSCC has established a Testing Omnibus account # 0115, firm symbol ZTOP, which will always result in an uncompared transaction for the submitting participant.
IV. Additional Information
Information of NSCC’s Year 2000 Testing Omnibus process and further Year 2000 testing details can be obtained on NSCC’s Year 2000 Web site at http://www.y2000.org under the Year 2000 participant testing section. Questions on this important notice and any other Year 2000 testing inquiries should be directed to the undersigned at (212) 412-8653 or NSCC’s Participant Testing Group at (212) 412-8505.
Robert M. Yodice
Director, Product Development