FIA Tech, a leading technology provider in the futures industry, announced that it has launched a new data service to meet the demands of customers trading futures and options for an accurate, comprehensive data solution designed to assist firms in complying with the tax regulation 871(m).

In September 2015, the U.S. Internal Revenue Service (“IRS”) and the U.S. Treasury Department released final regulations under Section 871(m) of the Internal Revenue Code which established regulations regarding the withholding of “dividend equivalent payments” on derivatives that reference U.S. equity securities. For market participants trading in these derivative products, failure to accurately determine products subject to this withholding status as required by the 871(m) regulations may lead to fines, increased scrutiny from regulatory authorities, and costly measures to rectify operational workflows.

By leveraging the vast amounts of exchange traded derivative (ETD) product and underlying reference data within FIA Tech’s Databank Network, 871(m) highlights key attributes of global index derivatives which are utilized to determine if a product is classified as “qualified” or “non-qualified” per IRS regulations.

Andrew Castello, SVP, Head of Client Operations, FIA Tech, said: “Our 871(m) solution is a powerful addition to our end-to-end regulatory support for ETD clients—streamlining compliance in a complex landscape. Delivered in a standardized, consolidated format, it seamlessly integrates with our rich reference data and can be customized with vendor symbologies or other reference data inputs to meet each client’s unique needs.”

FIA Tech’s Databank offering also includes Corporate Actions, a globally aggregated database which continuously tracks corporate actions announced on equity derivative exchange; Cash & Collateral, a globally collated dataset of acceptable collateral sourced directly from our CCP partners and its recently launched Foreign Securities Futures and Sanctioned Securities offerings.

About FIA Tech
FIA Tech is the leading technology provider to the exchange traded derivatives industry. Owned by a consortium of thirteen leading clearing firms and the Futures Industry Association (FIA), FIA Tech is committed to serving the industry and launching innovative solutions to improve market infrastructure across the listed and cleared derivatives industry. FIA Tech works in close partnership with the broader industry, including exchanges, clearinghouses, clearing firms and other intermediaries, as well as independent software vendors, buyside firms and end users to bring efficiency to the exchange traded and cleared derivatives industry.

For further information please contact:
Candice Adam
cadam@fia-tech.com
+44 (0)7771 906 073