NITE and Y2K... (sorry it is long winded!)
Trimark Securities, Inc.
100 Manhattanville Rd.
Purchase N.Y. 10577
Form BD-Y2K Part II
Report For: 04/30/1999
Filing Date: 04/30/1999
SEC File No. 8-48230
Firm CRD No. 38379
A) Has the broker's or dealer's board of directors (or similar body) approved and funded plans for preparing and testing its computers for Year 2000 Problems?
Trimark Securities, Inc. has assigned the highest priority to issues associated with the Year 2000 ("Y2K"). The Board of Directors of Trimark's parent corporation, Knight/Trimark Group, Inc. (“KTGI”) has approved the firm's written plan for preparing and testing its computer systems for issues associated with Y2K (“Y2K Plan”). Costs associated with efforts to prepare our data processing systems for Y2K have been estimated and approved for up to $500,000. These efforts include testing of internal systems, "point to point" testing of external interdependencies and contingency planning for the possibility that Y2K issues arise after December 31, 1999. Trimark believes the current funding level is adequate to prepare for the Year 2000.
B) Do the broker's or dealer's plans for preparing and testing its computer systems for Year 2000 Problems existing writing and do the plans address all mission critical computer systems of the broker or dealer wherever located throughout the world?
Trimark has developed a detailed written time-line documenting its plans for preparing and testing its computer systems for issues associated with Y2K. The firm has identified and is in the process of testing both its internal and external mission critical systems. Testing of internal and external systems is scheduled for completion by the end of the second quarter, 1999. As of March 15, 1999, Trimark had no significant exposure to Y2K issues outside of the United States with respect to its own mission critical systems. Should the situation change with respect to non-domestic mission critical systems before December 31, 1999, Trimark will devise and implement a plan of Y2K testing for such non-domestic mission critical systems.
All of the documentation produced for Trimark's Y2K program will be preserved in compliance with SEC Rule 17a-4.
C) Has the broker or dealer assigned existing employees, hired new employees, or engaged third parties to provide assistance in addressing Year 2000 Problems? If so, provide a description of the work that these groups of individuals have performed as of the date of each report.
Trimark has formed a Year 2000 Committee (the “Committee”) composed of existing resources from various departments and disciplines to work on Y2K issues. As of March 15, 1999, the Committee had identified the firm's mission critical systems, prepared a written plan for testing of mission critical systems, and was in the process executing the testing plan. Additional existing resources have been dedicated to the testing process on an "as needed" basis. Trimark Securities, Inc.
Form BD-Y2K Part II
Report For: 04/30/1999
Filing Date: 04/30/1999
SEC File No. 8-48230
Firm CRD No. 38379
Trimark has not hired any new employees or engaged any third parties to provide assistance in addressing issues associated with Y2K. Trimark believes that its current levels of staffing are more than adequate to remain on schedule with the Y2K Plan.
D) What is the broker's or dealer's current progress on each stage of preparation for potential problems caused by Year 2000 Problems? These stages are:
(1) Awareness of potential Year 2000 Problems;
Trimark is fully aware of the potential problems that may be caused by the Y2K problems.
(2) Assessment of what steps the broker or dealer must take to address Year 2000 Problems;
As of March 15, 1999, the Committee had performed a complete inventory of its computer hardware, applications, physical facilities and external interdependencies and developed a detailed written plan to investigate and identify issues associated with Y2K. The Committee is currently in the process of preparing a detailed contingency plan for the possibility that Y2K issues arise after December 31, 1999.
(3) Implementation of the steps needed to address Year 2000 Problems;
Trimark is currently testing the systems and technologies implicated by itsY2K Plan. The firm is on target to complete internal testing by the end of the second quarter, 1999, and external testing by the end of the third. The firm is satisfied that its mission critical systems are Y2K compliant. Trimark has received Y2K certifications from all of its mission critical third party vendors.
(4) Internal testing of software designed to address Year 2000 Problems, including the number and a description of the material exceptions resulting from such testing that are unresolved as of the reporting date;
As of March 15, 1999, Trimark had performed over 75% of its internal testing and 50% of its external point to point testing. The testing process is based on a strictly defined and monitored program designed to detect, document, analyze, and resolve any material exceptions resulting from the testing. No unresolved material exceptions resulting from such testing were outstanding as of the reporting date.
Trimark Securities, Inc.
Form BD-Y2K Part II
Report For: 04/30/1999
Filing Date: 04/30/1999
SEC File No. 8-48230
Firm CRD No. 38379
(5) Point-to-point or industry testing of software designed to address Year 2000 Problems (including testing with other brokers or dealers, other financial institutions, and cstomers), including the number and a description of the material exceptions resulting from such testing that are unresolved as of the reporting date; and
Trimark participated in the official industry-wide tests conducted on four successive weekends in March and April of this year. Trimark's written plan with respect to these tests includes provisions for the detection, documentation, analysis, and resolution of material exceptions resulting from such testing. No unresolved material exceptions resulting from the industry-wide testing were outstanding as of the reporting date.
(6) Implementation of tested software that will address Year 2000 Problems.
Trimark tested and implemented revisions to it's main trading system to specifically address issues associated with Y2K. As of March 15, 1999, Trimark's testing program had not discovered any other material exceptions. No unresolved material exceptions resulting from Y2K were outstanding as of the reporting date.
E) Does the broker or dealer have written contingency plans in the event, that after December 31, 1999, it has problems caused by Year 2000 Problem?
Contingency planning is included within Trimark's overall Y2K Plan. Trimark is currently in the process of identifying the key risks associated with the possibility that Y2K problems occur after December 31, 1999. When completed these plans will include the identification of various internal and external system and/or facilities failures, alone and in combination. A crisis management matrix will be established to guide Trimark's response to each scenario, according to the category and severity of the actual systems and/or facilities failure.
F) What levels of management of the broker or dealer are responsible for addressing potential problems caused by Year 2000 Problems? Provide a description of the responsibilities for each level of management regarding the Year 2000 Problems.
Trimark's parent company, KTGI has assigned overall responsibility for addressing potential Y2K problems to the Chairperson of the Year 2000 Committee. The Committee's membership includes the firm's senior Information Technology managers, and personnel from other departments within the firm. The senior Information Technology managers, in conjunction with the Chairperson of the Committee are responsible for the planning, testing and implementation of solutions to issues associated with Y2K. Trimark's senior management and the Board of Directors of KTGI, is briefed on the Committee's progress at least once per quarter.
Trimark Securities, Inc.
Form BD-Y2K Part II
Report For: 04/30/1999
Filing Date: 04/30/1999
SEC File No. 8-48230
Firm CRD No. 38379
G) Provide any addition material information concerning the broker's or dealer's management of Year 2000 Problems that will help the Commission and the designated examining authorities assess the readiness of the broker or dealer for the Year 2000.
Safe Harbor for Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements should be read with the cautionary statements and important factors as discussed below. Forward-looking statements are all statements other than statements of historical fact, including without limitation those that are identified by the use of the words "anticipates," "expects," "intends," "plans," and similar expressions.
Trimark is including the following cautionary statement to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the firm. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions (many of which are based, in turn, upon further assumptions) and other statements which are other than statements of historical fact.
Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed. Trimark's expectations, beliefs and projections are expressed in good faith and are believed by the firm to have a reasonable basis in, without limitation, examination of data contained in the firm's records and other data available from third parties. However, there can be no assurance that the firm's expectations, beliefs, or projections will be achieved or accomplished.
New factors emerge from time to time, and it is not possible for the firm to predict all of such factors, or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. Furthermore, it is not possible to assess the effect of each such emerging factor on the firm's state of preparedness with respect to issues associated with Y2K. Therefore, any forward-looking statement speaks only as of the date on which such statement is made. The firm undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events.
In addition to the factors and matters discussed above, some important factors that could cause actual results or outcomes to differ materially from those discussed in forward-looking statements include, without limitation, the efficacy of the firm's testing of its internal systems and external interdependencies, the degree of success by the firm's customers, vendors, and other third parties critical to the operation of the firm's business in adequately addressing issues associated with Y2K, the effectiveness of the industry-wide tests in identifying and resolving Y2K associated issues and the ability of Trimark to successfully respond to, and recover from system and/or facilities failures resulting from Y2K problems after December 31, 1999.
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