Otkritie and Metropol UK will be the first Russian brokers to trade depository receipts on Turquoise, a pan-European multilateral trading facility (MTF).
Turquoise launched its depository receipt (DR) trading service, covering 120 of the most heavily-traded instruments, on 2 October. DR transactions conducted on Turquoise are cleared by EuroCCP, the MTF’s incumbent central counterparty.
DRs – comprising global depository receipts and American depository receipts – allow investors to trade foreign shares on their local trading venues rather than the exchanges where the shares are listed. They are often used to invest in emerging market companies.
“Turquoise’s proposition is a valuable new channel for DRs, with better pricing and risk managed clearing,” commented Alan Brooks, vice president, equity sales, of Metropol UK, a subsidiary of Russian broker IFC Metropol.
Dr. Roman Lokhov, CEO of Otkritie Securities, added: “The opportunity to trade DRs on the Turquoise MTF is important to Otkritie as it provides us with an effective vehicle to maximise investments directly to international markets.”
According to figures from Citi Depositary Receipts Services, $4.2 trillion of depository receipts were traded in 2008, a 27% increase on the previous year. London-traded global depository receipts accounted for $522 billion of that figure.