ConvergEx, a provider of investment technology solutions and global agency brokerage services, has announced two additions to its suite of electronic ADR products offered through its dedicated 24-hour ADR Desk.
Reportedly, the new products, ADR Plus and Reverse ADRs, give clients additional ways to automate the ADR conversion process, improve daily workflow and access deeper pools of liquidity.
Acccording to the company, the comprehensive ADR product offering includes: ADR Plus, Reverse ADRs and ADR Direct. ADR Plus is an algorithmic strategy that allows clients to optimally source liquidity for their ADR trades in both the overseas and US markets. ADR Plus automatically converts to and from ADRs without clients having to manage the conversion process.
With Reverse ADRs clients can trade ADRs in the US, receive a local currency conversion price and settle the trade in ordinary shares in the local currency, all according to the local settlement cycle. With Reverse ADRs, investors can extend the local trading day into US trading hours, continue to trade when there is news and diversify trading markets during the Europe/US overlap.
ADR Direct allows client to trade ordinary shares overseas, convert the shares to ADRs in US dollars and receive a net ADR price in seconds. With ADR Direct, a client settles the ADR portion of the trade through the US settlement system.
Andrew Levine, managing director and head of ConvergEx’s ADR Desk, said: “These products are powered by a patent-pending process that enables our clients to automatically convert ordinary shares to ADRs and ADRs to ordinary shares in just a matter of seconds. These unique tools extend trading hours, minimize market impact and reduce trading costs, while ConvergEx’s ADR website gives clients full transparency for all aspects of their conversion trades.”
