Y2K Street Wide Testing

June 24, 1999 PSE MEMO FOR BROKERS NO. 206-99 SUBJECT : Y2K Street Wide Testing Recognizing the need to ensure the Y2K readiness of all market participants, the Exchange has initiated a series of Street Wide Tests covering the whole cycle of trading, backroom operations and settlement activities. These tests intend to verify that the trading-related systems and the interfacing between the systems of market participants are all Year 2000 ready. In this regard, the Y2K Street-Wide Test for the 1st Quarter of 1999 participated in by brokers, PCD, custodians, and some institutional investors was successfully completed last 15th-17th and 22nd-24th of April 1999. No date-related problem was encountered during the mock trading which tested all the functionalities and all subsystems of the Maktrade System. With these tests, the member brokers were able to verify that the PSE Maktrade System is Y2K ready , which means the ability of the Maktrade System for continued normal operation such that the functionality and performance of the System is not affected by dates prior to, during and after the Year 2000. With regards to the broker's systems, more than half has submitted certification of Y2K readiness. Others reported that they have manual systems, some reported that they still have to .finish their Y2K activities, and the rest were not able to submit complete reports. In order to provide the testing environment for all market participants the Y2K Committee has decided to proceed with the next scheduled Street Wide Tests. However, in response to the requests of some member-brokers who still has to finish their Y2K activities by the end of June 1999, the Y2K Committee has agreed to move the next SWT on the 1st and 2nd week of August 1999 . The next SWT shall still consist of four (4) mock trading sessions and two (2) PCD settlement sessions. Appropriate test guidelines will be distributed before the end of July 1999. LibLex (SGD . ) JOSE LUIS U. YULO, JR . President and CEO