JPMorgan has launched an Internet-based platform for investors and brokers to exchange ADR and ordinary share positions.
More commonly known as MAX, the ADR Cross-Book Maximizer from JPMorgan is billed by the bank as the first online, automated marketplace for ADR traders and brokers to execute ADR/ordinary share cross transactions.
Patrick Colle, global head of JPMorgan's ADR Group, says the system should help maximise trading liquidity for investors. "Our intent is to bring efficiency to an existing informal market and to lower investor transaction costs," he says.
Crosses over MAX are guaranteed to settle anonymously in a T+2 environment and will be priced as low as $0.015 per share, says Colle, providing savings against industry standard $0.05 issuance and cancellation fees.