[This message was posted by tom jordan of Jordan & Jordan <[email protected]> to the "Allocations" discussion forum at http://fixprotocol.org/discuss/13. You can reply to it on-line at http://fixprotocol.org/discuss/read/f56ed346 - PLEASE DO NOT REPLY BY MAIL.]
David, Institutional business will not be directly affected by the new cost basis rules. The rules will apply only to firms that currently receive 1099-B forms in 2011. Beginning in 2012 S Corporations will become subject to tracking cost basis so if you have S Corps that are engaged in institutional business they will be subject to tracking basis then. However it may not be clear to brokers whether their counterparty broker or customer may need that information so they may have to provide additional information. With regard to transfers all firms will basically be required to indicate on any transfers of securities that are “specified” securities whether the securities are covered or uncovered. This means that brokers transferring institutional accounts will have to indicate that the securities are uncovered. As far as transmissions on the entry of orders whether or not there is reason to identify the tax lots being sold will depend upon the nature of the firm’s systems sup porting the institutional business. So this requires much analysis before it is appropriate to define tags and fields. Suggest you work with your tax advisors or securities business analysts to define the need. Hope this helps. Tom > David, > > The topic of tax lot information / versus purchase information is being > discussed in the FPL-MMI Collaboration Working Group. This topic has > been raised with the Americas Regional Committee's leadership to > determine whether the cost basis reporting regulation would also affect > institutional side or just the retail side. > > Two user defined fields were registered by Citi for VSPDate (5751) and > VSPPrice (5752). The FPL-MMI WG intends to recommend that these be used > in FIX 4.2 implementations. The remaining question for the retail folks > is whether a tax lot ID is desirable. > > Currently there are not official tags assigned by FPL to support this > yet. > > As FISERV is a member of FPL I would encourage FISERV to at least > participate in the FPL-MMI WG (please contact the FPL Program Office). > > > > > Hello, > > > > I'm hoping someone could help me out here. I was going over the > > AllocationInstruction message, in Fiximatem and I noticed there is no > > reference/option for a versus purchase date field name, how do other > > users of FIX 5.0 store their versus purchase date information for each > > sell trade in the allocation message? Is the versus purchase date > > information stored in a different tag? Does a seperate message need to > > be created to send out the tax lot information? > > > > Any insight would be much appreciated. > > > > Thanks, David [You can unsubscribe from this discussion group by sending a message to mailto:[email protected]] -- You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/fix-protocol?hl=en.
