Corporate Actions: APPORTIONMENT OF BASE COSTS (Adjustment Factors)

After any event there is a need for price series data, i.e. stock prices, earnings, dividends, NTA, etc. to be back adjusted so that it is comparable with current data.

It is now possible to automate this process using EDI's worldwide adjustment factor service. EDI generates adjustment factors for worldwide exchanges as soon as all the necessary data becomes available on or after the ex-date.

Although this information is available for UK and other exchanges on an ad-hoc basis, we know of no other information service that provides this service for the entire world in a standardized format for all markets. Further no other service covers all corporate actions spanning multiple currencies for the same event, giving you the choice of using the most appropriate factor for your purposes.

Finally, EDI's service is the first to offer "Rescind" records that enable you to reverse the original adjustment (when back adjusting price series data) or remove the original adjustment (when databaseing the adjustments) after an event has been cancelled or corrected.

Now you can automate the entire process of applying adjustments from the initial application to the removal or reversal and re-application if necessary.