The Bank of New York has released its annual year-end report which states trade and capital growths, as well as a globally strong investment performance, were the highlights in the American and global depositary receipt markets in 2006.
“Cross-border investing reached new heights in 2006 and significant increases in most depositary receipt metrics were clear highlights for the year,” says Christopher Sturdy, executive vice president and head of The Bank of New York’s depositary receipt division. “The continued globalization of the world’s equity portfolios drove extraordinary levels of DR trading and investment in both U.S. and non-U.S. markets.”
Traded DRs increased 58 percent in 2006, with nearly $1.9 trillion traded on US and non-US markets and exchanges. Issuers from 25 countries raised a record $44.5 billion by completing 129 new primary and follow-on DR offerings. The number of sponsored DR programs also made an industry-wide record with 1,985 programs from 76 countries. The market value now exceeds $1.2 trillion.
In 2006, DR liquidity also reached an all-time high, surpassing the previous highest level ser in 2000 by 25 percent.
The total value of US investment in non-US equities increased to $3.5 trillion as of 30 September, which was a 25 percent increase compared to the year before.