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Citi Depositary Receipt Services
Unsponsored ADRs
Unlike traditional sponsored ADR programs, unsponsored
ADR programs are established by a depositary bank without
the direct involvement of the respective non-U.S. company,
provided that the company’s securities represented by the ADRs
are either registered or qualify for an exemption from Securities
and Exchange Commission (SEC) registration. An October 2008
SEC rule change simplified the manner in which this exemption
is obtained, making it automatically available to many non-U.S.
companies, provided they meet certain requirements.
As of June 2015, the universe of unsponsored programs
available to investors totaled more than 1,620 programs
with Japanese (240 programs) and British (190 programs)
issuers constituting 26% of the unsponsored program count.
In terms of unsponsored trading volume, Japan and Greece
were the most active countries, comprising 46% of the total
unsponsored trading volume. Driven by the economic turmoil
in Greece, unsponsored DR liquidity shifted in favor of EMEA
to 59% of the total unsponsored trading volume in contrast to
41% from Asia-Pacific.
Compared to the same period last year, trading volumes of
unsponsored ADR programs increased by 693 million DRs (or
54%) to almost 2.0 billion DRs in the first half of 2015. The
overall increase in unsponsored trading activity was driven
by programs from Greece, Japan, Switzerland and Germany,
with increases of 268 million DRs, 166 million DRs, 94 million
DRs and 38 million DRs, respectively. Eurobank Ergasias SA
represented 94% of the increase in total Greek unsponsored
trading volume while Tokyo Electron represented 81% of the
total increase in Japanese unsponsored trading volume. In
terms of sector, issuers from the Financial and Technology
sectors were the most active, constituting 45% of the
total unsponsored trading volume and 20% of the total
unsponsored program count.
Unsponsored Programs
Number of Programs
1, 3
Trading Volume
2
Others
39%
Singapore
4%
France
4%
Germany
4%
Australia
6%
China
8%
Hong Kong
8%
UK
12%
Japan
15%
Others
9%
Hong Kong
3% Spain
3%
Sweden
3%
Germany
5% UK
6%
China
7%
Switzerland
8%
France
10%
Greece
18%
Japan
28%
Source: Bloomberg Financial Markets and Depositary Data Interchange
Source: Bloomberg Financial Markets and Depositary Data Interchange
Unsponsored Program Count: 1,623
Unsponsored Trading Volume: 2.0 billion DRs
1
The total count of 1,623 unsponsored DR programs is as of June 30, 2015.
2
Unsponsored DR trading volume as of June 30, 2015.
3
Unsponsored ADR programs represent “H shares” of companies from Mainland China that trade on the Hong Kong Stock Exchange.