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Citi Depositary Receipt Services
Unsponsored ADRs
Unlike a traditional sponsored ADR program, an unsponsored
ADR program is 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 2016, the total universe of unsponsored ADR
programs available to investors expanded to 1,649 programs.
Issuers from Japan (252 programs) and the UK (186 programs)
constitute the largest percentage of available unsponsored
programs, making up a combined 26%. Compared to the same
period last year, unsponsored DR trading volume decreased
by 8% to 1.5 billion DRs in the first half of 2016. ADR programs
from Japan and Switzerland comprised 25% and 13%,
respectively, of the total unsponsored trading volume.
Tencent Holdings Ltd was the most active unsponsored ADR
program in the first half, with 89 million shares traded, while
Tokyo Electron experienced the sharpest drop in volume
year-over-year, declining by 262 million shares. In terms of
sector, ADR issuers from the consumer discretionary and
financial sectors were the most active, constituting 41% of the
total unsponsored trading volume.
1
The total count of 1,649 unsponsored DR programs is as of June 30, 2016.
2
Unsponsored DR trading volume as of June 30, 2016.
3
Unsponsored ADR programs of companies from Mainland China that trade on the Hong Kong Stock Exchange (H Shares).
Unsponsored Programs
Number of Programs
1
Trading Volume
2
Other
38%
Italy
4%
France
4% Germany
5%
Australia
7%
China
7%
Hong Kong
9%
UK
11%
Japan
15%
Other
13%
Italy
3% Spain
4%
Hong Kong
4%
Germany
4% Sweden
5%
UK
6%
China
11%
France
12%
Switzerland
13%
Japan
25%
Source: Bloomberg and Depositary Data Interchange
Source: Bloomberg and Depositary Data Interchange
Unsponsored Program Count: 1,649
Unsponsored Trading Volume: 1.5 billion DRs
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