unsponsored-drs-multiply-with-newfound-ease

Unsponsored DRs multiply with newfound ease

An SEC rule change has created hundreds of new products for US investors to choose from, but not everyone is happy about being involved.

It may have been a quiet eight months in terms of new equity issuance, but US investors have had no shortage of new American depositary receipts to buy in recent months, following a rule change that has made it easier for DR banks to set up unsponsored DR programmes.

The data is quite fluid with new programmes being both created and withdrawn, but since early October when the rule change took effect, more than 1,300 unsponsored programmes have been set up by the four DR banks. Since many issuers have been targeted by more than one bank, not all of these have resulted in new choices for investors, but according to data compiled by Bank...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222