The Pricing and Reference Data business of Interactive Data Corporation, the Massachusetts-based technology firm, has teamed up with Scivantage, a provider of web-based front- and middle-office technology systems, to develop tools geared towards industry cost basis reporting requirements.

According to the firms, under the Energy Improvement and Extension Act of 2008 brokerage firms are required to report adjusted cost basis information to both clients and the Internal Revenue Service, beginning with stock acquired on or after 1 January 2011. Accordingly, Scivantage will use Interactive's Cost Basis Calculator, which adjusts original cost basis for corporate actions and dividend reinvestments, and can identify the originally purchased security following mergers, name changes or other corporate events, as an integrated component of Maxit, its tax-based investment-decision support system for financial advisors and individual investors.

"Mutual funds and brokerage firms need sophisticated resources to process corporate actions, calculate cost basis, manage tax processes and streamline their reporting formats," said Charles Price, senior director, entity data products for Interactive Data. "Interactive Data's service, combined with Scivantage Maxit, can help financial institutions more effectively prepare for and meet the requirements of cost basis reporting regulations."

Interactive Data Corporation itself this month agreed to be acquired by investment funds managed by Silver Lake and Warburg Pincus, in a deal valued at $3.4 billion.