FOR IMMEDIATE RELEASE                                  99-41

  SEC Chairman Levitt Commends Industry on Successful Y2K Test
                                
     Positive Sign That Industry Y2K Preparation Is On-Track
                                
     Washington, DC, April 29, 1999 -- Securities and Exchange
Commission Chairman Arthur Levitt today praised the securities
industry for successfully completing an industry-wide Year 2000
test of computer systems.  "I am heartened by the success the
securities industry has achieved in addressing the Y2K computer
problem thus far.  This is a product of the great level of
cooperation and the seriousness with which the industry has
addressed this issue," said Levitt.

     The SEC worked closely with the Securities Industry
Association (SIA) as the testing process, which cost more than
$100 million to run, was developed.  Test participants included
almost 400 brokerage firms, mutual funds, and service bureaus, as
well as U.S. securities exchanges, Nasdaq, clearing agencies, and
the Depository Trust Corporation.  The participants entered and
settled simulated trades with their systems reconfigured to
December 29, 30, and 31, 1999, and January 3, 2000.  Testing
included equities, unit investment trusts, mutual funds,
corporate bonds, municipal bonds, options, government securities,
and money market products.

     Chairman Levitt said that the preliminary results of the
test, which showed that more than 97 percent of the almost
260,000 expected results were successfully achieved with only
four actual Y2K errors, "show that the securities industry is in
good shape."  Chairman Levitt added that "we will continue our
work with other federal regulators, the SIA, and the industry to
complete the additional Y2K testing scheduled later this year."
He also noted that the SEC has been coordinating the development
of contingency plans and communication centers with other federal
regulators, the SIA, and the industry in the course of preparing
for January 2000.

     Chairman Levitt also said the SEC, the exchanges, and the
NASD will continue to review Y2K forms filed by broker-dealers,
transfer agents, and investment advisers.  "Testing, disclosure,
and contingency planning remain the three key guideposts that
will help to successfully navigate the millennial date change,"
Chairman Levitt said.

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