The New York Stock Exchange ("NYSE") recently issued an information memorandum announcing revisions to its Year 2000 compliance certification requirement for member organizations. Currently, NYSE members must complete their internal Year 2000 remediation and systems implementation and submit written certification of compliance to the NYSE by June 30, 1999. Under the revised procedures, the written certification must be submitted by July 9, 1999. Moreover, the certification itself must be on member firm letterhead, signed by the chief executive officer or senior managing partner, and contain the following revised language:
This letter is to advise you that [firm name] has a reasonable basis for believing that it is now Year 2000 compliant as defined by Exchange Information memo No. 99-4 and has met the generic milestones as outlined in that Memo. Subject to routine development and maintenance not related to the Year 2000 effort, all Year 2000 work is completed other than ongoing testing, and there are no known remaining systems, programming changes, or checks to be made, other than those involving outside providers or services (e.g., service bureaus, clearing brokers, market data services, etc.).
We understand that as part of the Exchange's ongoing monitoring of members and member organizations regarding Year 2000 compliance, we will be contacted periodically to reconfirm our organizations's Year 2000 compliance status. Should we undertake any systems changes that would change our compliance status as indicated above, we will promptly notify the Exchange.
According to the NYSE, failure to deliver the signed certification by July 9, 1999 "will indicate a lack of Y2K preparedness and will result in special monitoring by the Exchange of the organization's efforts." Additionally, the NYSE noted that it may impose business restrictions on noncompliant firms and require noncompliant carrying member organizations to introduce their customer accounts "on a fully disclosed basis" to a Y2K compliant carrying and clearing firm. *
Year 2000 Update, NYSE Information Memo No. 99-19 (Apr. 9, 1999).