IHS Markit announced the launch of Markit¦CTI Tax Solutions for Section 871(m) to address compliance obligations for US equity derivatives. Brown Brothers Harriman and other financial institutions participated in the design phase of the solution and signed on as early adopters. IHS Markit’s holistic Section 871(m) solution is part of a suite of data and tax offerings to assist buyside and sellside firms and fund administrators in complying with 871(m) obligations. The solution builds on the expertise and integration of Markit | CTI Tax Solutions, Markit DeltaOne, MarkitSERV, Markit Corporate Actions, Markit Dividend Forecasting and Markit PrimeOne. In addition, the offering leverages the Markit DeltaOne SOLA platform to establish the qualification status of indices and exchange traded products based on official composition, dividend and position data. This information can then be easily consumed via the SOLA database or standard flat file distribution. In line with the regulatory requirements, the solution also enables firms to conduct a pre-trade impact analysis and determine whether or not a particular derivative instrument would fall in scope. If an instrument is within scope, the solution calculates the amount subject to withholding and the withholding tax rate for a specific counterparty. All of the eligibility data is stored in a centralized repository and can be extracted for Form 1042-S reporting.