Managed Account Solutions: A Growing Source of Depositary Receipt Demand

The proliferation of global asset allocations within the managed account solutions industry presents a significant opportunity to augment demand for depositary receipts (DRs). This is due to the fact that most managed account solutions use DRs to diversify globally. As the world's leading depositary, BNY Mellon continuously monitors the DR market to identify these types of noteworthy market trends and leverage them on behalf of clients.

Elevating Market Visibility for your DRs: Looking to Canada for DR Demand

Over the past several years, we recognized a steady rise in DR investment on the part of Canadian institutions. This welcome trend resulted from the repeal of a Canadian rule that had restricted pension funds' capacity to invest globally. Our Depositary Receipt Division's Global Capital Markets Group took the opportunity to access this growing investor base and began an intensive educational effort in Canada.

OTCQX International: Attractive US Trading Platform for Non-US Blue Chip Companies

OTCQX International has emerged as the pre-eminent over-the-counter1 (OTC) securities marketplace for blue chip non-US companies trading in the United States. Many of the world's leading publicly traded companies are now quoted there, with over six dozen joining OTCQX International since the beginning of 2007. The reasons for this move to OTCQX International?s platform are two-fold: i) in 2007 the OTCQX began to be reorganised into separate tiers based on defined quantitative and disclosure standards, and ii) significant regulatory changes implemented by the United States Securities and Exchange Commission (the SEC) under the Securities and Exchange Act of 1934 (the Exchange Act) during 2007 and 2008 made a move by non-US companies to the OTCQX platform much easier and substantially more attractive.

OTCQX: A Venue For Cross-Listing DRs in the U.S.

We consistently look for ways to help clients' ADRs gain greater visibility and liquidity. A Pink Sheets program with many of the benefits of a U.S. exchange cross-listing offers just that and without SEC registration requirements.

Oxford Metrica Study - 2011

Oxford Metrica Study - 2011

The Unintended Consequences of a Brazilian Tax on Depositary Receipts (English)

Oxford Metrica, a global independent strategic advisor, has been studying and monitoring the Depositary Receipt market for more than a decade. The recent changes in Brazilian tax rules regarding foreign investors and DRs should be of considerable interest to investors, stock exchanges and policy-makers worldwide and warrants further study and publication. The stated and reasonable objective in imposing the Imposto sobre Operações Financeiras was to dampen demand for the Real. The results presented in this study demonstrate a significant reduction in trading volumes on the BOVESPA following the subsequent imposition of a second IOF tax on DR issuances which proved to be counter to its intended objectives. The result has been a significant if unintended cost on local investors, BOVESPA and Brazilian companies. In addition to providing a valuable facility to foreign investors, DRs bring many benefits to local investors and issuers.

The Unintended Consequences of a Brazilian Tax on Depositary Receipts (Portuguese)

Oxford Metrica, a global independent strategic advisor, has been studying and monitoring the Depositary Receipt market for more than a decade. The recent changes in Brazilian tax rules regarding foreign investors and DRs should be of considerable interest to investors, stock exchanges and policy-makers worldwide and warrants further study and publication. The stated and reasonable objective in imposing the Imposto sobre Operações Financeiras was to dampen demand for the Real. The results presented in this study demonstrate a significant reduction in trading volumes on the BOVESPA following the subsequent imposition of a second IOF tax on DR issuances which proved to be counter to its intended objectives. The result has been a significant if unintended cost on local investors, BOVESPA and Brazilian companies. In addition to providing a valuable facility to foreign investors, DRs bring many benefits to local investors and issuers.

Building Corporate Reputation: Taking Ownership of Unsponsored Depositary Receipts

Oxford Metrica, a global independent strategic advisor, has been studying and monitoring the Depositary Receipt market for more than a decade. In the last year or so, DR programmes for more than 800 companies have been established by depositary banks to meet investor demand for these securities. Many of the DR programmes have been created without the active participation of company management. This briefing sets out how the situation has arisen, and what you can do about it in the best interests of your shareholders. We provide evidence of the reputational benefits of management taking an active role in the process.