Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

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December 1, 1998

NASD Rule Filing For Y2K Results

By Staff Reports.

With fears rising that Wall Street is headed for doomsday unless broker dealers' computers are fully prepared for the Year 2000, the National Association of Securities Dealers has filed a proposal with the Securities and Exchange Commission mandating that computers be tested for compliance.

The rule proposal would also require that market makers and their clearing firms report the results to the NASD. At the moment, the SEC requires firms to be Year-2000 compliant. Nonetheless, the NASD's actions come in the wake of SEC enforcement actions against more than 1,000 broker dealers that it said were not compliant.

At the same time, the regulatory arm of the NASD and the SEC recently fined about 60 firms for failing to file Year-2000 status reports by a September 21 deadline.

Meanwhile, some of the nation's biggest clearing firms are planning to introduce Year-2000 testing with correspondents by early next year. These firms include the Jersey City-based Pershing Division of Donaldson, Lufkin & Jenrette, and New York's U.S. Clearing Corp. The firms will simulate computer conditions compatible with the switchover from 1999 to 2000.