Reports on tests of trading cycles conducted during the past six weeks by more than 400 members of the Securities Industry Association indicate that year 2000 errors affected only two one-hundredths of a percent of the 260,000 expected results, according to statements released today by the SIA. An example of an expected result is the receipt by a registered representative of a buy order.
Data-entry errors, miscommunication among companies about testing procedures, and non-year 2000 system problems accounted for most of the other unsuccessful results, about 2.5% of the total. Some of the year 2000 problems that were found were the appearance of "1900" instead of "2000" on some reports, and some trade-processing routines displayed the year as a blank instead of "00."
In addition to using results of the test to fine-tune systems and complete contingency plans, the SIA will focus on efforts to reassure investors that the industry is ready for the year 2000.
SIA member companies will test the year 2000 compliance of market data systems on May 1 and will also conduct individual tests with partners and providers throughout the rest of the year.
The SIA spent about $10 million managing the tests. The entire securities industry is estimated to be spending $5 billion on year 2000 projects.