Stock repurchase transactions are traditionally disjointed, manual processes whereby treasurers rely heavily on spreadsheets and e-mail. This time-consuming process can create a bottleneck for monitoring compliance with SEC Rule 10b-18, as well as for evaluating transaction cost benchmarks including Volume-Weighted Average Price (VWAP). STNâs corporate stock buy-back solution provides Rule 10b-18 VWAP reports complete with time-stamped executions.
STN users can also view executions throughout the day and work with their brokers to adjust their trading strategy as needed. STN provides consolidated reporting, including an end-of-day summary and a complete recap and summary at the end of purchase periods, for transactions that are executed through STN Execution Services, as well as for plans that use multiple brokers or banks. In addition, the STN solution provides automated notification of transactions to the corporationsâ custodians, facilitating straight-through processing.
Kevin Rafferty, president of SunGardâs wealth management business, said, âSTNâs corporate stock buy-back solution gives treasurers transparency into their counterpartyâs fulfillment of their stock repurchase plans. In addition, when using STN Execution Services, corporations can be assured their plan is being executed by dedicated and experienced traders, and have the potential for reduced cost per transaction on stock repurchases.â