ASX media release - Finance Industry Starts Year 2000 Equities Test

1 April 1999

On 6 April, ten stockbroking organisations, five institutions, six banks, Australia’s largest share registry processor and the Australian Stock Exchange will commence an integrated Year 2000 test.

The test, involving some of the industry’s key players will take 15 business days and will concentrate on the most common equity trading and settlement transactions. For example, during the test, brokers will trade with each other in 1999 and settle the transactions in 2000 with other test participants. The process will also take into account simulated company announcements, namely a dividend and a bonus issue.

The test dates will commence with 28 December 1999, and finish in early March 2000.

"Although ASX is managing the test, this is not an ASX test, it is an industry test. This is an industry-wide initiative aimed at boosting public confidence in the state of readiness of this market," said Richard Humphry, ASX Managing Director.

The Industry Test Steering Committee includes representatives of each sector that is taking part in the test and the Australian Securities and Investments Commission (ASIC).

"If critical Year 2000 problems are detected during the test, it will provide an opportunity for participants to correct them before the end of 1999," said Mr Humphry.

To support the test, ASX has assembled a totally stand-alone Year 2000 test environment that brings together equities trading, settlement and data signal generation.

"This is a complex undertaking. So that all test participants can familiarise themselves with the test process, we have been carrying out preparatory testing since January."

Test participants were selected to provide a good coverage of the major trading and back-office systems used in the equity market.

The following organisations will be taking part in the April 1999 test:

Broking Organisation (Australia)
ABN Amro Equities Australia Limited
BT Alex Brown Australia Limited
BNP Equities Australia Limited
Deutsche Securities Australia Limited
J. B. Were & Son
Macquarie Equities Limited
Merrill Lynch Equities Australia Limited
Ord Minnett Group Limited
Salomon Smith Barney Securities
Warburg Dillon Read Australia Equities Limited

CHESS Institutional Participant
ANZ Custodian Services
Chase Manhattan Nominees Limited
National Custodian Services
Permanent Trustee Co. Ltd
Westpac Custodian Nominees Limited

CHESS Participant Bank
ANZ Banking Group
Bankers Trust Australia
The Chase Manhattan Bank
Macquarie Bank
National Australia Bank
Westpac Banking Corporation

Share Registry Processor
Computershare Limited
Further details on the test are available on ASX ShareNet.