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The Corporate Action Engine offers the means to automate and centralize the storage and maintenance of corporate action information, parse proprietary streams from multiple vendors, and simplify downstream application development. Downstream systems that rely on clearing and custody data for accurate account state must typically wait until the batch cycle following back-office corporate action processing to receive the adjusting transactions that result from that processing. This leads to a lag between x-date and portfolio adjustment such that accounts in the downstream systems are out of balance. Further, cost basis of holdings to which corporate actions are applied is most often lost since few back-office systems are able to track tax lots. The Corporate Action Engine obviates the need for back-office adjusting transactions and permits the Portfolio Accounting Engine to automatically process corporate action events and present true x-date portfolio holdings with accurate cost basis. The Corporate Action Engine parses incoming feeds from one or more corporate action data vendors into a centralized repository of corporate action objects. Anytime a corporate action object is created and made active, current portfolio holdings are automatically adjusted per the details of the corporate action event -- the necessary transactions are applied to adjust portfolio holdings while maintaining cost-basis continuity across the event. An end-user interface is provided for the manual maintenance of corporate action objects. Manual edits of corporate action information result in the realignment of portfolio holdings as required. The Corporate Action Engine supports the following corporate action events:
The Corporate Action Engine along with the Portfolio Accounting Engine together offer a robust, scalable platform for applications requiring maintenance of accurate and timely cost basis portfolio data. |
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