Pricing and Reference Data business of Interactive Data Corporation can help brokers and others required to file Form 1099-B comply with the new broker basis reporting requirements under the Emergency Economic Stabilization Act of 2008 (EESA).
The broker basis reporting provision within the recently passed EESA requires brokers to report a customer’s adjusted basis when reporting securities transactions and indicate whether gain is long-term or short-term. The cost basis reporting requirements are designed to recapture revenue from the under-reporting of capital gains, and are effective for securities acquired after 31 December 2010, beginning with stock transactions after 1 January 2011.
Daily Cost Basis service enables firms to more effectively monitor their clients’ holdings with automated calculation and delivery of cost basis information. It provides clients with access to a comprehensive database that includes corporate actions for most listed securities dating back to their inceptions.
The service also includes a sophisticated calculator that automatically adjusts the cost basis for securities transactions. This calculator can assist clients in identifying original cost by retrieving important information related to corporate actions.
Interactive Data offers a wide range of formats and delivery systems for data in Cost Basis.Clients can access Web-based tools that help to monitor daily corporate actions affecting cost basis, create portfolios for tracking specific events and build customized reports. Additional zest of the program is batch processing of historical transactions for assisting in confirming and establishing adjusted cost basis as well as comprehensive tools for helping to confirm cost basis for information for accounts that have been transferred.
The new cost basis reporting provision mandates reporting of short and long-term gains, and financial institutions need to implement cost basis practices in order to comply with these requirements,” says Charles Price, senior director, entity data products, Interactive Data. “With more than 35 years of dividends and pricing information available, we are positioned to help our clients navigate and manage this challenging process.
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