Basic HTML Version
12
Citi Depositary Receipts
Unsponsored ADRs
As of December 2014, the total universe of unsponsored
programs available to investors grew to over 1,600 programs.
The majority of unsponsored programs are from Asia and
Europe with Japan and the United Kingdom being the most
active countries, constituting 27% of the total unsponsored
program count and 39% of the total unsponsored trading
volume. From a regional perspective, the liquidity in
unsponsored ADR programs was nearly even between Asia
and Europe as the former constituted 48% of DR volumes
and the latter constituted 52% of DR volumes.
In terms of industry, issuers from the Consumer (Cyclical) and
Financial sectors were the most active, constituting 34% of
the total unsponsored program count and 39% of the total
unsponsored trading volume.
Compared to the same period last year, trading volumes of
unsponsored programs increased by 946 million DRs (or
56%) to 2.6 billion DRs in 2014. The major contributors to the
increase in overall unsponsored trading activity occurred in
programs from Japan (370 million DRs), Greece (161 million
DRs), France (108 million DRs), and Germany (73 million
DRs), partially offset by a decrease in DR trading volumes in
programs from Hong Kong (32 million DRs) and Indonesia (12
million DRs). Leading sectors that experienced an increase
in unsponsored trading volumes were Financial (297 million
DRs) and Technology (267 million DRs), which was offset by a
decrease in Energy and Utilities (12 million and 8 million DRs,
respectively).
As a result of the regulatory changes in India which liberalized
the creation of sponsored and unsponsored OTC ADRs backed
by Indian equities, we anticipate a significant rise in Indian
ADR programs in 2015.
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.
Unsponsored Programs
Number of Programs
1, 2
Trading Volume
3
Other
36%
Singapore
4%
Italy
4% France
4% Germany
4%
Australia
5%
Hong Kong
8%
China 8%
UK
12%
Japan
15%
Other
12%
Sweden
2% Italy
3%
Hong Kong
3%
Germany
5%
Greece
6%
Switzerland
7% UK
8%
China
9%
France
14%
Japan
31%
Source: Bloomberg Financial Markets and Depositary Data Interchange
Source: Bloomberg Financial Markets and Depositary Data Interchange
Unsponsored Program Count: 1,602
Unsponsored Trading Volume: 2.6 billion DRs
1
Program count as of December 2014.
2
Unsponsored ADR program count as of December 15, 2014.
3
Trading Volume as of December 15, 2014.