Operational Capability Requirements of Registered Broker-Dealers and Transfer Agents and Year 2000 Compliance
The Securities and Exchange Commission ("Commission) is soliciting comment on new proposed Rules 15b7-2 and 17Ad-20 and temporary Rules 15b7-3T, 17Ad-21T, and 17a-9T under the Securities Exchange Act of 1934 ("Exchange Act'). Broker-dealers and transfer agents are becoming increasingly reliant on computer systems to perform their functions. Thus, it is critical that they have sufficient operational capability. In addition, broker-dealers, transfer agents, and other securities market participants are facing a critical test of their operational capability with the upcoming Year 2000. These proposed rules would require registered broker-dealers and transfer agents to have sufficient operational capability and their computer systems to be Year 2000 compliant. These proposed rules are intended to protect investors and the securities markets by reducing the potential systemic risk as a result of operational failures in general, and in particular, computer systems failures related to the Year 2000 at registered broker-dealers and non-bank transfer agents.
30 days after publication in Federal Register
64 FR 12127