Y2K Street Wide Testing

November 18, 1999 PSE MEMO FOR BROKERS NO. 384-99 SUBJECT : Y2K Street Wide Testing The Y2K Committee and the Board of Governors, recognizing the need to ensure the Y2K readiness of the Exchange and all member-brokers have decided to proceed with the last scheduled integration or Street Wide Test (SWT). This is to enable a final verification of the readiness of the trading-related systems of all market participants before the millennium transition. The street wide tests shall still consist of four (4) mock trading sessions and two (2) PCD settlement sessions to be conducted on Tuesday-Saturday, 23-27 November 1999. Please find attached the test guidelines and schedule. In line with previous guidelines on Y2K testing (Memo for Brokers 131-99), please be reminded that: 1. Brokers participation in all the SWT mock trading sessions shall be mandatory. Brokers who do not participate shall be penalized P2,500 per day of non-participation. 2. Brokers who have been formally advised by PSE that they have already satisfactorily submitted the required print-outs and certification based on previous SWT's need not submit the required checklist and attachments. Otherwise, the Broker has to submit all required reports duly certified as an original printout by the firm's President & Operations chief. 3. Based on the result of the test, brokers shall submit a final Y2K Readiness Certification signed by the nominee and the president. 4. A broker whose system is still not Y2K ready by 24 December 1999 will not be allowed to trade until they are certified as Y2K ready. cdlex For inquiries, please call Mr. Efren Siron at telephone nos. 637-8810/891-9043 for Maktrade System matters and Miss Norma Guoco at telephone no. 840-3312/893-5636 for PCD System matters. (SGD.) JOSE LUIS U. YULO, JR. President and Chief Executive Officer Y2K Street Wide Test Plan for Maktrade System 4th Quarter 1999 Objective The Exchange will be conducting the last Street-Wide Tests for the year to make a final verification of the Y2K Readiness of the PSE Trading System. The testing will also re-verify the Y2K readiness of all trading-related systems of market participants (PCD, member-brokers, settlement banks, data vendors, and others) and the interfacing between these systems. For this purpose, tests shall still be conducted for the complete cycle of trading, backroom operation, and settlement for the following dates identified as critical during the millennium transition: December 24, 1999 Enter and check trades that will settle on Jan. 3, 2000 January 3, 2000 Test first trading day for year 2000 Check settlement on the 1st working day for year 2000 February 23, 2000 Enter and check trades that will settle on Feb 29, 2000 February 29, 2000 Check trading on Feb 29, 2000 (leap year test) Check settlement on February 29, 2000 Street-Wide Testing Dates Simulated Trading (PSE - Maktrade System) November 23, 1999 2:30 - 4:20 P.M. (December 24, 1999) November 24, 1999 2:30 - 4:20 P.M. (January 3, 2000) November 25, 1999 2:30 - 4:20 P.M. (February 23, 2000) November 26, 1999 2:30 - 4:20 P.M. (February 29, 2000) Simulated Settlement (PCD - Fintracs System November 27, 1999 7:00 A.M. - 12:00 N.N. - (January 3, 2000) November 27, 1999 1:00 P.M. - 6:00 P.M. (February 29, 2000) On these testing dates, the Maktrade System will be available for access on the trading floor, from the brokers' remote trading terminals and from the front-end systems of brokers with CFE systems. The real-time price information feed is likewise available to data vendors who wish to participate in the Y2K testing. The Fintracs System of PCD will also be available for access by the authorized users using their current company and user passwords. Issues to Trade To ensure an active trading and matching of orders, brokers are expected to enter orders only on the following issues: MBT, TEL, MER, SMCB, ANS, MPC, ALI, LC & PA. Moreover, order prices and volumes entered should be realistic and reasonable . SWT Daily Schedule The following timetable for the trading periods will be used: Physical Date : November 23, 1999 (Tuesday) Logical Date : December 24, 1999 Remarks : Mock Trading only. Brokers to enter orders that will settle on Jan. 3, 2000. Activity Time Responsible 1. Change system date and start-up application of the following 2:30 - 3:00 Trading System Servers PSE Trading Floor and Remote Terminal PCs Trading Personnel Broker's CFE Systems Broker w/ CFE Data Vendor Feed Data Vendors 2. Pre-Open Period 3:00 - 3:10 Brokers Trading Brokers to enter pre-open orders Personnel 3. Open Period Brokers to enter mainboard and oddlot orders at market prices 3:10 - 3:40 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross, and Personnel special block cross) 4. Run-off Period Brokers to enter mainboard and oddlot orders at closing prices 3:40 - 3:50 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross and Personnel special block cross) 5. Market Close 3:50 6. Print/Save Transactions (reference for Jan 3, 2000 settlement) 3:50 - 4:20 Trading Personnel 7. Generate Data for PCD and Settlement Banks 3:50 - 4:00 PSE 8. Send data to PCD/Settlement Banks 4:00 - 4:20 PSE/PCD/Banks 9. System Shutdown 4:20 PSE Physical Date : November 24, 1999 (Wednesday) Logical Date : January 3, 2000 Remarks : Brokers to enter trading data to test first trading day of the year 2000. Activity Time Responsible 1. Change system date and start-up application of the following 2:30 - 3:00 Trading System Servers PSE Trading Floor and Remote Terminal PCs Trading Personnel Broker's CFE Systems Broker w/ CFE Data Vendor Feed Data Vendors 2. Pre-Open Period 3:00 - 3:10 Brokers Trading Brokers to enter pre-open orders Personnel 3. Open Period Brokers to enter mainboard and oddlot orders at market prices 3:10 - 3:40 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross, and Personnel special block cross) 4. Run-off Period Brokers to enter mainboard and oddlot orders at closing prices 3:40 - 3:50 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross and Personnel special block cross) 5. Market Close 3:50 6. Print/Save Transactions 3:50 - 4:20 Trading Personnel 7. Generate Data for PCD and Settlement Banks 3:50 - 4:00 PSE 8. System Shutdown 4:20 PSE Physical Date : November 25, 1999 (Thursday) Logical Date : February 23, 2000 Remarks : Mock Trading only. Brokers to enter orders that will settle on Feb. 29, 2000 Activity Time Responsible 1. Change system date and start-up application of the following 2:30 - 3:00 Trading System Servers PSE Trading Floor and Remote Terminal PCs Trading Personnel Broker's CFE Systems Broker w/ CFE Data Vendor Feed Data Vendors 2. Pre-Open Period 3:00 - 3:10 Brokers Trading Brokers to enter pre-open orders Personnel 3. Open Period Brokers to enter mainboard and oddlot orders at market prices 3:10 - 3:40 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross, and Personnel special block cross) 4. Run-off Period Brokers to enter mainboard and oddlot orders at closing prices 3:40 - 3:50 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross and Personnel special block cross) 5. Market Close 3:50 6. Print/Save Transactions (reference for Feb. 29, 2000 3:50 - 4:20 Trading Personnel settlement) 7. Generate Data for PCD and Settlement Banks 3:50 - 4:00 PSE 8. Send data to PCD/Settlement Banks 4:00 - 4:20 PSE/PCD/Banks 9. System Shutdown 4:20 PSE Physical Date : November 26, 1999 (Friday) Logical Date : February 29, 2000 Remarks : Brokers to enter trading data to test the leap day in February 2000 Activity Time Responsible 1. Change system date and start-up application of the following 2:30 - 3:00 Trading System Servers PSE Trading Floor and Remote Terminal PCs Trading Personnel Broker's CFE Systems Broker w/ CFE Data Vendor Feed Data Vendors 2. Pre-Open Period 3:00 - 3:10 Brokers Trading Brokers to enter pre-open orders Personnel 3. Open Period Brokers to enter mainboard and oddlot orders at market prices 3:10 - 3:40 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross, and Personnel special block cross) 4. Run-off Period Brokers to enter mainboard and oddlot orders at closing prices 3:40 - 3:50 Brokers Trading Brokers to enter deals (mainboard cross, Oddlot cross and Personnel special block cross) 5. Market Close 3:50 6. Print/Save Transactions (reference for Feb. 29, 2000 3:50 - 4:20 Trading Personnel settlement) 7. Generate Data for PCD and Settlement Banks 3:50 - 4:00 PSE 8. System Shutdown 4:20 PSE Physical Date : November 27, 1999 (Saturday) Logical Date : January 3, 2000 PCD System Testing for settlement of trades entered on 7:00 - 12:00 PCD & Brokers' December 24, 1999 Backroom Personnel Physical Date : November 27, 1999 (Saturday) Logical Date : February 29, 2000 PCD System Testing for settlement of trades entered on 1:00 - 6:00 PCD & Brokers' February 23, 2000 Backroom Personnel Test Results Feedback Upon completion of the Street-Wide Tests, member-brokers should report any unusual or erroneous results so that the PSE can do the appropriate remediation. cdll All member-brokers are required to submit a final Y2K Readiness Certification attached as Appendix A . However; member-brokers who have NOT been formally advised by PSE that they have already satisfactorily submitted the complete required computer printouts and certification based on previous SWT's are required to submit them on or before Friday, 17 December 1999 . Listed below are the required documents to be submitted: 1. For all Test Dates Blotter Reports or Transaction Prooflist or Trade Summary Report or its equivalent generated by the broker's Back-Office system. This is a report that contains the daily buy and sell transactions. Daily Transactions Report generated by Maktrade and by CFE System (if applicable) Invoice generated by Back-Office System (can be printed on photocopied preformatted form) 2. For December 24, 1999 and February 23, 2000 Transactions Delivery Worksheet or its equivalent generated by the broker's Back-Office System. This is a report that contains the summary of shares to be Delivered / Received as compared to the transactions done four (4) trading days ago. 3. For January 3, 2000 and February 29, 2000 Stock Inventory Report or equivalent generated by the Back-Office System and by the PCD system. This is a report that contains the physical/actual security held by the broker in the vault and/or PCD and/or Transfer Office. An inventory report must be printed for the before settlement and after settlement conditions for each of the test date. Appendix A CERTIFICATION This is to certify that based on the results of the Y2K Street-Wide Testing and our internal system testing, (Broker Name) has successfully completed the Y2K BackOffice System Testing with the following system description: System Name : __________________ Version Number : __________________ Operating System : __________________ Hardware Platform : __________________ Our System is certified Y2K ready as per procedures and requirements set by the PSE. It is understood that this certification pertain to the above-described System that we are using and will be using by the Year 2000. We undertake to notify the Exchange of any enhancement, addition or modification on this System and to undergo another testing and re-certification should PSE decides that the changes are significant. Given on this (day and month) Nineteen Hundred Ninety Nine. Certified by: ____________ ____________ Nominee President