Wall Street Letter VOL. XLV, No. 31 – Sept. 30, 2013 | Seite 6

NEWS

06

mammoth distribution list allows it to
host various capabilities, providing an
opportunity for providers lacking in
distribution but with exemplary tech
to get their offerings out to market,
noted Nangalia.
One such example is the partnership between REDI and Citadel,
announced last week, which will offer
Citadel’s order and position management system through seamless
integration with REDI’s execution
management system.
“Citadel is very well known for its
asset management and technology
and had the idea of commercializing
their in house technology and releasing their OMS platform through
REDI,” said Nangalia. “REDI could
have built or bought our own OMS,
but we were really impressed by the
content and decided to integrate the
two platforms.”
Nangalia detailed the combined
OMS/EMS will operate in the same
manner as the old REDI EMS. He
added users will not see a difference

between REDI’s EMS and the addition of Citadel’s order and position
management to the offering.
The provider will also work with
others on its vast distribution list to
bring in various types of front and
back office capabilities to the core
platform, Nangalia said.
An example of this is REDI’s
integration of Tradelegs’ Derivatives
Strategist capability, which opened
the platform to deeper options trading, according to Nangalia.
TECHNOLOGY

Scivantage gears up
for coming IRS cost
basis deadline
Scivantage’s Maxit, a cost basis
analysis platform, is edging closer
to finalizing changes for cost basis
regulation, according to Robert
Linville, director of product
management and Job Dennison,

senior vice president of investment
reporting.
Maxit reports adjusted cost basis
to Scivantage clients and the IRS,
which crafted the regulation that
drives the capability’s production,
according to Linville.
Dennison noted the final stage of
regulation is so arduous that the IRS
divided the deadlines up by two years
for fixed income instruments, with
“less complex” reporting due by January 2014 and “complex” reporting
due by January 2016.
“Simple things like interest date
and maturity date, those are easy, but
become complicated when you have
bonds that pay interest in a currency
other than US dollars or have a variable interest rate change over every
quarter,” said Linville, in regards to
the 2016 deadline.
Both Linville and Dennison noted
that these accounting processes
have been in place for years, but
the regulation demands the need
for electronic reporting, due to the

EXCHANGES & ATSs

Warrants on NYSE to be allowed price changes

I

ssuers of warrants listed on the New York Stock Exchange
will soon have the option of making changes to the exercise
price during the life of the contract based on a proposal from the
exchange that has been submitted to the SEC.
NYSE told the regulator it wants to allow issuers to reduce the
exercise price of listed warrants for a minimum of 20 days.
The exchange has traditionally restricted the ability of warrants issuers to make reductions, or make any changes that
would effectively reduce the price (such as increasing the number of shares received if a warrant is exercised without increasing the exercise price of the warrant).
At the same time, Nasdaq Global Market has allowed issuers
to reduce the exercise prices of their warrants, as does NYSE
MKT as long as the reduction lasts for a minimum of 10 days.
NYSE said the allowance offers issuers more flexibility to
make decisions about whether the exercise price should be
reduced and is in the best interest of shareholders, and it
noted the board of a listed company is the best entity to make
that decision.
“The exchange notes that there may be valid reasons for a

reduction in the exercise price of listed warrants, that such
reductions are not uncommon among companies listed on other
listing exchanges, and that it has found no evidence that these
exercise price reductions have generally been controversial,” it
said.
NYSE stated it will require companies reducing warrant exercise prices to publicize the reduction in line with its immediate
release policy.