ConvergEx expands electronic ADR suite

Source: ConvergEx

ConvergEx, a premier provider of investment technology solutions and global agency brokerage services, today announced two additions to its suite of electronic ADR products offered through its dedicated 24-hour ADR Desk.

The new products, ADR Plus and Reverse ADRs, give clients additional ways to automate the ADR conversion process, improve daily workflow and access deeper pools of liquidity.

"Using our proprietary ADR technology, we pioneered these solutions to address what was historically a challenging trading, clearing and settlement process. These products are powered by a patent-pending process that enables our clients to automatically convert ordinary shares to ADRs and ADRs to ordinary shares in just a matter of seconds," said Andrew Levine, managing director and head of ConvergEx's ADR Desk. "These unique tools extend trading hours, minimize market impact and reduce trading costs, while ConvergEx's ADR website gives clients full transparency for all aspects of their conversion trades."

The comprehensive ADR product offering includes:

  • ADR Plus - An algorithmic strategy that allows clients to optimally source liquidity for their ADR trades in both the overseas and U.S. markets. ADR Plus automatically converts to and from ADRs without clients having to manage the conversion process. For U.S. exchange listed ADRs, during trading hours in Europe and Latin America where the overseas and ADR markets overlap, ADR Plus executes each algo slice by dynamically monitoring liquidity and price in both markets. Even though part or all of the order will be traded overseas, the ADR Plus workflow permits clients to send U.S. symbols from their OMS or EMS in the same way they would for an order traded in the U.S.
  • 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. With Reverse ADRs, investors can extend the local trading day into U.S. trading hours, continue to trade when there is news and diversify trading markets during the Europe/U.S. overlap.
  • ADR Direct - This ground-breaking product allows client to trade ordinary shares overseas, convert the shares to ADRs in U.S. dollars and receive a net ADR price in seconds. With ADR Direct, a client settles the ADR portion of the trade through the U.S. settlement system.

Continued Levine, "We've coupled years of ADR conversion expertise with cutting-edge technology to offer products that are the first of their kind. We will continue to roll out innovative solutions and access to new markets in this highly specialized business."

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