Stock Exchange Of Thailand Launches Y2k Command Center

The Stock Exchange of Thailand has announced the launch of the Thai stock market's Y2K Command Center and the completion of its 52 contingency plans, successfully tested and ready for implementation at its main and second computer centers if needed. Also handy are contingency plans for communications and public utilities. Despite full confidence of their preparedness, full technical staff of the SET will be on the alert from midnight December 31 onwards for checking and testing of all equipment and computer systems to ensure a smooth transition into the new millennium. All participants in the securities business are required to participate in the Big Test scheduled for January 1, 2000. Mr. Somkid Jiranuntarat, SET Senior Vice President, in his capacity as Head of the SET Y2K Team, revealed in the press conference today that the SET has been preparing for the Year 2000 computer problems since 1997 with a total budget of Bht. 40 million committed solely for this purpose. Given the complex and interrelated nature of the Y2K issues, the SET has placed emphasis upon close coordination with relevant parties in the Thai capital market, including the Securities and Exchange Commission, the Bank of Thailand, the Thai Bankers' Association, member companies, listed companies, the Thailand Securities Depository Company & its members and SET information services users, to name a few. The SET Y2K preparation program is divided into 4 major phases. The first comprises the internal testing of its trading, clearing & settlement, securities registrar, and information dissemination systems. The second phase involves the testing of all connected systems - or the industry-wide test. The third phase consists of the formulation and testing of the Contingency Plans while the fourth and final phase addresses final preparations for the transition into the new millennium. The SET has completed all the four phases culminating over 100 tests and 2 successful industry wide tests (on May 22 and June 5) to date. All the tests have yielded satisfactory results - confirming that the Stock Exchange of Thailand and all the parties participating in the tests were 100% Y2K Ready. Khun Somkid added that as the securities trading operations relate and rely upon various external factors in varying degrees, to minimize risks and ensure business continuity the SET has already completed a total of 52 contingency plans, all in line with those of the Thai capital market. 32 plans are devoted to the operation systems provided by the Exchange to various participants in the industry, 7 for its own internal systems and the remaining 13 for its embedded systems. The contingency plans, already tested and ready for implementation if needed at the two computer centers, are ready to cover the system hardware & software, application software and network carriers, among others. Included as part of its routine work and specially beefed up during this period is the back-up of all information and database critical to the SET's operations, which will be separated into 2 sets and independently safeguarded at its main and second computer centers at the SET Building and the Abdulrahim Building (on Rama IV Road) respectively. "The SET's Y2K contingency plans are both comprehensive and detailed enough in nature to allow us to address any irregular occurrences. For example, the contingency plan supporting the SET automated trading system (ASSET) alone comprises four-layer sub-plans. Should the brokers' main systems fail either in sending orders or receiving order confirmations, they can use the separate reserve systems located at their companies or those provided at the SET Building. In the event the SET's reserve systems fail, we have a plan to run a "Call Market" system, which will match trading orders at specified time (s) on the existing computers, or failing this, on the reserve computers instead," Khun Somkid explained. As part of its precautionary measures, the SET has also prepared contingency plans for communication systems and key public utilities. Regarding communication systems, both computer-to-computer and person-to-person, the Exchange has worked closely with the Communication Authority of Thailand, the Telephone Authority of Thailand and the private providers of communication services to ensure separate systems from separate providers are handy for use in the event one should fail. With regard to necessary public utilities, the Exchange has prepared a petrol-fueled generator and stored sufficient water required for its precision air-conditioning systems in the computer centers. For the transition into the new millennium, the SET has set up the SET Y2K Command Center at the SET Building to coordinate closely with relevant entities in the securities industry, monitor and address any irregular developments, select appropriate contingency measures - if necessary - and disseminate information regarding the Exchange's operations in this regard. The SET Y2K Command Center is comprised of an directorate committee, headed by the SET President and joined by executives from the SET, Thailand Securities Depository Co., Ltd. (TSD), the Association of Securities Companies, which will oversee the operations of the Command Center and give final approval as to which contingency plans will be used, in case one is needed. Khun Somkid himself will lead the Command Center Operations Team, which is divided into 3 centers : Operations, Planning & Evaluation and Information Centers. To ensure a smooth transition into the new millennium, technical staff will be working from midnight December 31, beginning with roll-over checking of all computers, network equipment and embedded systems to ensure their Y2K compliance in preparation for the Big Test of all systems and application programs all day during January 1, 2000. Trading simulation tests on an actual Year 2000 day will be carried out with brokers, TSD, TSD members, listed companies and data subscribers. The Directorate Committee of the SET Y2K Command Center and the Operations Team will meet in the evening of January 1 to address and agree on the appropriate measures and contingency plans needed to solve Y2K problems, if any. Correction must be completed by January 3 to ensure the continuity of securities trading on January 4, the first trading day of the Year 2000. With regard to the preparedness of listed companies, since mid-1997 the SET has required them to disclose on a quarterly basis all pertinent details regarding their Y2K preparations for the benefit of investors' decision making. These details include analysis and evaluation of the possible effects of the Y2K problem on the company's business, preparation plans & budget and progress of the company's corrective and preventive measures. At the end of Q3/99, the total of 395 listed firms have budgeted a total amount of Bht. 5.5 billion for Y2K, led by the companies in the banking, communication, building & furnishing materials, transportation, chemicals & plastics and energy sectors respectively. 281 firms, representing 90% of the total market capitalization, have reported 90-100% completion of their Y2K programs, while 11 companies, representing 1% of the market capitalization, are in the final stages. The remaining companies, representing 9% of the market capital, have reported that the transition into the Year 2000 is not expected to have significant impact on their companies' operations. Listed companies in key sectors such as the banking, finance and securities, communications and telecommunications, insurance and energy are also governed and required to meet the benchmarks set forth by their relevant industry associations. Khun Somkid concluded that the Stock Exchange of Thailand along with the key entities of Thailand's capital market have been active in disseminating their Y2K preparations and readiness through various types of media & activities in order to promote investors' confidence in the Thai capital market. Seminars, briefings, country-wide exhibitions, media conferences & interviews, educational printed materials, among others, have been produced to reach various target groups. Investors and the general public can also learn about the SET Y2K preparedness from its website at http://www.set.or.th/y2k or contact the SET directly. Investors interested in the SET Y2K operations during the millennium transition period can call the SET Y2K Information Center using the SET Y2K Hotlines Tel: 229-2000 or 654-5491 to 5493 during December 31, 1999 - January 3, 2000 or visit the SET website at http://www.set.or.th/y2k for any developments in this regard.