[10423]
October 27, 1998
TO: ACCOUNTING/TREASURERS COMMITTEE No. 47-98
COMPLIANCE ADVISORY COMMITTEE No. 35-98
SEC RULES COMMITTEE No. 107-98
RE: INSTITUTE MEMORANDUM ON "EMERGENCY" PRICING PROCEDURES
______________________________________________________________________________
The Institute received several inquiries yesterday when the New York Stock Exchange
suspended trading for an hour due to a computer glitch regarding procedures for pricing fund shares
when a securities market is closed. In 1996, the Institute circulated a memorandum to members
summarizing the pricing requirements under the Investment Company Act of 1940 and SEC staff
guidance with respect to past “emergencies.” Such “emergencies” include situations when either the
fund’s office is closed (e.g., a severe snowstorm) or a securities market is closed (e.g., the closing of the
Hong Kong Exchange in November 1987). I am enclosing another copy of the memorandum in order
to ensure that it will be readily available for your reference in dealing with any future emergency.
If you have any questions regarding the attached memorandum or any related issues, please
contact me (by telephone at 202/326-5824 or by e-mail at amy@ici.org).
Amy B.R. Lancellotta
Senior Counsel
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