Convergex has become the first financial institution to establish a new ADR Depositary for the marketplace in almost 20 years.
In addition to trading and converting ADRs with Convergex, clients now can direct Convergex to create ADR programs for them to invest in, allowing these US investors new access to foreign companies.
With this new offering, Convergex will be competing directly with the traditional ADR Depositaries. Committed to increasing its ADR capabilities, Convergex will continue to build out the Depositary for its brokerage clients over the coming months as the service becomes available in 27 markets.
“ADRs are an essential security for US investors interested in accessing international markets, and unsponsored ADRs are one of the fastest growing segments of our ADR brokerage business,” says Andrew Levine, Convergex managing director and head of ADRs. “With a commitment to apply additional resources toward the highly-specialized business of ADRs, we challenged ourselves to build this offering for our clients, and our expertise enabled us to deliver.”
Convergex’s end-to-end model delivers high service and processing efficiencies to clients by allowing access to multiple services via a single touch-point for investing in, trading and settling ADRs. In addition to the ADR Depositary, Convergex offers ADR conversion trading in 33 countries through a dedicated 24-hour trading desk and electronic ADR execution tools that include:
• ADR Direct – This patented product allows clients to trade ordinary shares overseas, convert the shares to ADRs in U.S. dollars and receive a net ADR price. With ADR Direct, a client settles the ADR portion of the trade through the U.S. settlement system.
• Reverse ADRsSM – Investors can use Reverse ADRs to extend their local trading day into U.S. trading hours, continue to trade when there is relevant news or diversify trading markets during the Europe/U.S. overlap. With Reverse ADRs, clients can trade ADRs in the U.S., receive a local currency conversion price and settle the trade in ordinary shares in the local currency, all according to the local settlement cycle.
The Convergex ADR Depositary is offered through Convergex Depositary, Inc, and ADR Direct and Reverse ADRs are offered through Convergex Execution Solutions LLC.
