Reports To Be Made by Certain Brokers and Dealers

The Securities and Exchange Commission ("Commission') is soliciting comment on temporary rule amendments to Rule 17a-5 under the Securities Exchange Act of 1934 ("Exchange Act') that would require certain broker-dealers to file with the Commission and their designated examining authority two reports regarding Year 2000 compliance. The reports would enable the Commission staff to report to Congress in 1998 and 1999 regarding the industry's preparedness; supplement the Commission's examination module for Year 2000 issues; help the Commission coordinate self-regulatory organizations on industry-wide testing, implementation, and contingency planning; and help increase broker-dealer awareness that they should be taking specific steps now to prepare for the Year 2000. Additionally, the Commission is issuing an advisory notice on its books and records rules relating to the Year 2000.