The Bank of New York has enhanced its American depositary receipt (ADR) conversion platform, ADR Direct. The bank says it is now the only product to offer electronic trading and real-time ADR conversions. The upgrade was launched by G-Trade, a member of BNY Securities Group that specializes in providing electronic direct access for non-U.S. dollar equity execution in over 25 international marketplaces through Bloomberg TRADEBOOK.
Using a patent-pending process, ADR Direct now fully automates ADR conversions and is the only platform that doesn’t require manual intervention or follow-up. It electronically links ADR and local market settlement information, ADR and ordinary share trading identifiers, corporate actions, client allocation instructions, and delivery instructions for non-U.S. markets and foreign exchange. Clients can reduce market impact and maximize returns by obtaining better execution, improved anonymity and more cost transparency in cross-border trading.
With ADR Direct, clients do not need a global settlement and clearing infrastructure to access non-U.S. trading markets. It eliminates the cost and resources associated with clearing and settling ordinary share trades in overseas markets, as ADRs clear and settle within the standard U.S. clearance and settlement cycle. While ADR DirectSM is integrated into the G-Trade platform, it is available to clients of all BNY Securities Group companies.
“The enhanced ADR Direct gives investors greater speed, transparency and efficiency and, for the first time, allows them to electronically trade and perform ADR conversions in real-time,” says Jonathan Slone, president of G-Trade. “In addition, they can now secure an indication of interest online prior to executing ordinary shares. ADR DirectSM combines the capabilities of G-Trade, Bloomberg TRADEBOOK and The Bank of New York to offer a more cost-effective solution for ADR investors.”