First ADR depository launched in 20 years 28 November 2014New York Reporter: Stephanie Palmer
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Convergex has become the first financial institution to establish a new American Depository Receipt (ADR) depository for more than 20 years.
As well as the existing trading and conversion services, clients can now direct Convergex to create ADR programmes to invest in, allowing US investors new access to foreign companies.
Andrew Levine, managing director and head of ADR at Convergex, said: “ADRs are an essential security for U.S. investors interested in accessing international markets, and unsponsored ADRs are one of the fastest growing segments of our ADR brokerage business.”
Competing with traditional ADR depositories, Convergex will build up a depository for brokerage clients over the next few months, with services becoming available in 27 markets.
The end-to-end model delivers high service and processing efficiencies, and the new depository will introduce multiple services via a single touch-point for trading and settling ADRs.
“With a commitment to apply additional resources toward the highly-specialised business of ADRs, we challenged ourselves to build this offering for our clients, and our expertise enabled us to deliver,” said Levine.
The patented ADR Direct product allows clients to trade shares overseas in 33 countries and converts them in to US trading dollars, and the Reverse ADRs product extends international trading days in to US trading hours.
Convergex will also offer a 24-hour trading desk and electronic ADR execution tools.
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