Agency broker and technology provider ConvergEx has added two new products – ADR Plus and Reverse ADRs – to its electronic American depository receipt (ADR) trading suite. According to ConvergEx, the two additions give clients additional ways to automate the ADR conversion process, improve daily workflow and access deeper pools of liquidity.
ADR Plus is an algorithmic strategy that allows clients to source liquidity for ADR trades in both the overseas and US markets. The strategy automatically converts to and from ADRs without users having to manage the process. For US exchange-listed ADRs, during trading hours in Europe and Latin America where the overseas and ADR markets overlap, ADR Plus executes each algo slice by dynamically monitoring liquidity and price in both markets. Even though part or all of the order will be traded overseas, the ADR Plus workflow permits clients to send US symbols from their order or execution management system in the same way as for an order traded in the US.
Reverse ADRs enables clients to 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. The product allows investors to extend the local trading day into U.S. trading hours, continue to trade when there is news and diversify trading markets during the Europe/US overlap.
ConvergEx’s ADR desk also offers ADR Direct, which allows users to trade ordinary shares overseas, convert the shares to ADRs in US dollars and receive a net ADR price in seconds. With this product, clients settle the ADR portion of the trade through the US system.
“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 a matter of seconds,” said Andrew Levine, managing director and head of ConvergEx’s ADR desk, in a statement. “These unique tools extend trading hours, minimise market impact and reduce trading costs, while ConvergEx’s ADR website gives clients full transparency for all aspects of their conversion trades.”