Euromoney TRADEDATA announces the launch of its new data set which highlights futures and options contracts in scope under IRS Section 871(m), the US Withholding Tax on Derivatives coming into effect on 1st January 2017. The 871(m) service will offer customers the efficient and timely identification of affected contracts to focus withholding tax work flows for organizations of any size.
The long in the making Section 871(m) of the US Internal Revenue Code, affects all transactions where so-called "dividend equivalent" payments that reference dividends on stocks from sources in the US, are made to non-US persons, reversing previous rules where non-US source payment recipients were exempt from US withholding tax.
Commenting on the new service Mark Woolfenden, Managing Director of Euromoney TRADEDATA said "for an industry that is already overshadowed by regulation, the 871(m) curve ball is yet one more challenge to face. Our engagement with our clients always leads us to innovate new data reference solutions and with this new service, we are able to identify contracts falling under 871(m) and tag them in our futures and options database. This start point enables our customers to then apply their work flows and proprietary transaction information to complete their withholding tax obligations."
The new data service can be either integrated into existing data feeds or supplied standalone to specific delivery points for customers of all sizes.
Commenting on the new 871(m) data service Gregg Whitbread, Global Head of Business Development said "Euromoney TRADEDATA has a long standing presence and well-established reputation in the regulatory reporting space. In addition to partnering with the global trading community, we engage with a wide spectrum of market participants that either have an obligation to comply with, participate in, or oversee international regulatory reporting regimes and that reach extends even as far as national competent authorities. With the spotlight on European regulations, EMIR and MiFID ii, 871(m) seems to have caught out, by surprise, a not insignificant number of firms with less than 50 calendar days now remaining until the regulation becomes effective. Euromoney TRADEDATA is proud to announce that with this new 871(m) service, it is contributing a vital piece of the jigsaw to an overall in-house or non-proprietary solution.”