Millennium technology gives banks a headache
Monday 09 December 1996
The problem is not with the cost of these changes - which is running into hundreds of millions of pounds - but with the number of people and the amount of time available to make the changes.
Kit Farrow, director of the London Investment Bankers Association (Liba), said: "It's a question of whether we're attempting to achieve more than collectively City institutions can cope with."
Crest, the new electronic share system, is continually dogged with problems and the introduction of new shares to the system has been delayed.
Problems with Crest have had a knock-on effect on the Bank of England's plans to upgrade the Central Gilts Office electronic settlements system which will use the same software as the Crest system.
This means that plans to trade the interest payments on gilts separately from the principal - known as "strippable" government bonds - have been pushed back further into 1997.
On top of these immediate changes, City banks are preparing their computer systems for the introduction of the euro, the single European currency, in 1999. Regardless of whether Britain takes part in the unification, banks must be ready to trade the currency.
They must also deal with the problem facing companies world-wide - the fact that computer systems were not designed to cope with dates after 1999. When 2000 begins, many firms will find that their computers believe it is 1900 again as they only read the last two digits of dates.
"We're turning our attention increasingly to the load on systems changes," Mr Farrow said. Liba was looking at this issue more vigorously than in the past and was talking to its members about the problems technological changes could be posing.
"We're very anxious not to jump to conclusions," said Mr Farrow. "But we may find that there are real questions to try to explore with members."
- 1 UK's biggest male rape charity Survivors UK has state funding slashed to zero despite 120% rise in men reporting sexual violence and seeking help
- 2 'Don't blame all men for rape' campaign backfires spectacularly
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 5 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
UK's biggest male rape charity Survivors UK has state funding slashed to zero despite 120% rise in men reporting sexual violence and seeking help
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
Priest warns pupils the 'Charlie Charlie Challenge' is 'demonic activity'
Tinder and Grindr dating apps blamed for surge in cases of HIV, syphilis and other STDs
Fifa corruption arrests: Sepp Blatter 'quite relaxed' and confident he is 'not involved'
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...
£16 - 20k: Guru Careers: A Graduate Editor / Editorial Assistant is needed to ...