NEW YORK, Nov. 19, 2014 /PRNewswire/ -- Convergex today announced that it 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 U.S. 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 U.S. investors interested in accessing international markets, and unsponsored ADRs are one of the fastest growing segments of our ADR brokerage business," said 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.
*ADR Direct includes technology subject to Convergex's U.S. Patent No. 7,778,896.
Convergex is an agency-focused global brokerage firm that takes on the industry's toughest challenges, from complicated trades to complex businesses. With clients' interests as the top priority, Convergex delivers comprehensive solutions that span global high-touch and electronic trading, options technologies, prime brokerage, clearing, commission management and beyond. Headquartered in New York with a presence in several other locations including Atlanta, Boston, Chicago, Orlando, San Francisco and London, the company serves nearly 3,000 clients accessing over 100 global market centers.
Convergex provides brokerage services primarily on an agency basis, but may operate in a riskless principal and/or net trading capacity, and in connection with certain ETF or ADR transactions, may act as principal or engage in hedging strategies with such transactions. Convergex does not engage in market making or investment banking activities, other than as a selling group member.
In the U.S., Convergex offers products and services through Convergex Execution Solutions LLC (member NYSE/FINRA/SIPC), of which Convergex Prime Services is a division; LiquidPoint, LLC (member CBOE/SIPC); G-Trade Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); Convergex Depositary, Inc., and Convergex Solutions LLC, of which Connex, Jaywalk and LDB are divisions.
In London, Convergex operates through Convergex Limited, which is incorporated in England and Wales (registered with company number 06262150). Convergex Limited is authorized and regulated by the Financial Conduct Authority (FCA) of the United Kingdom.
The material, data and information (collectively "Convergex Information") that is available from Convergex is intended for institutional investor use only; is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a solicitation or offer to purchase or sell securities. Convergex Information is believed to be reliable, but Convergex does not warrant its completeness or accuracy. Clients should read their agreement with Convergex carefully as it contains important information and disclosures about the product or service covered by it. (11/18/14)
Contact: Michael Kingsley