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To: TFF who wrote (8778)	2/28/2001 5:33:45 PM
From: Gary Korn	of 12617

Wall Street Journal NYSE Fines TD Waterhouse For Order-Processing Problems BY COLLEEN DEBAISE Dow Jones Newswires NEW YORK -- In the first case of its kind, the New York Stock Exchange fined TD Waterhouse Group Inc. $250,000 for repeated system outages that prevented customers from making online trades. TD Waterhouse (www.waterhouse.com) agreed to pay the fine without admitting or denying wrongdoing. A TD Waterhouse spokeswoman said the Web site was down due to software glitches that "have long been corrected." NYSE officials said it was the first time they had disciplined an online brokerage for failing to follow proper procedures related to its Internet-trading business. An NYSE panel found TD Waterhouse couldn't process orders on 33 different trading days between November 1998 and April 2000. The system didn't process orders for periods ranging from 2 minutes to 1 hour and 51 minutes. During those times, the panel charged, TD Waterhouse didn't adequately advise customers of alternative order-entry systems. The panel also said the firm didn't follow telephone procedures correctly, sometimes putting customers on hold for up to an hour. "The review period was one of explosive growth that was very challenging for us and for our industry," said TD Waterhouse spokeswoman Melissa Gitter. "We regret that customers may have been inconvenienced by the issues identified by the exchange." She added the firm regularly spends "thousands of hours and millions of dollars" to improve its systems and procedures. The NYSE also fined the online brokerage for not reporting numerous customer complaints related to the trading and accessing problems. Ms. Gitter said criteria for reporting complaints to the NYSE changed during 1999, and that TD Waterhouse's system hadn't been updated to reflect those changes.

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