Advent Software has partnered with SunGard to provide additional FIX messaging capabilities via Advent's Moxy trade order management system, increasing the tax sensitivity of the software.

In the past, software users could select tax-optimized closing methods for their portfolios, but lacked an automated way to communicate this with custodians. Due to this, sometimes closing methods selected would differ from those offered by the custodian.

With the partnership with SunGard, Moxy now offers a straight-through-processing workflow to communicate versus purchase information on the FIX allocation message, and which can be used to specify tax lots when closing out positions.

On the development of the service, Advent cited the Emergency Economic Stabilization Act of 2008, which requires financial custodians to report adjusted cost basis information to the IRS. The cost basis reporting requirements, which went into effect on 1 January 2011, have made the ability to include tax lot information on trades critical, said Advent.