The Bank of New York Mellon Issues $1 Billion in Unsponsored Depositary Receipts During the First Quarter of 2009
April 29 2009 - 8:51AM
PR Newswire (US)
NEW YORK, April 29 /PRNewswire-FirstCall/ -- The Bank of New York
Mellon, the global leader in asset management and securities
servicing, announced that it has issued more than $1 billion of new
unsponsored American Depositary Receipts (ADRs) since U.S.
Securities and Exchange Commission (SEC) rule amendments
streamlining the establishment of these securities took effect last
October. A change implemented to Rule 12g3-2(b) under the
Securities Exchange Act of 1934 has led to a significant rise in
the number of over-the-counter ADRs on the market. As a result of
the rule change, certain non-U.S. companies are now automatically
exempt from SEC reporting requirements, provided specified
information is accessible on their websites. Submitting hard-copy
exemption requests to the SEC is no longer required. Unsponsored
ADRs are issued by one or more depositary banks in response to
market demand but without a formal agreement, while sponsored ADRs
are issued by a single depositary bank appointed by a single
issuer. Unsponsored ADRs generally trade over-the-counter (OTC),
while sponsored ADRs trade either on the OTC market or on major US
stock exchanges such as the NYSE or Nasdaq. Through the first
quarter of 2009, nearly 700 new unsponsored ADR programs from 47
countries were created by The Bank of New York Mellon and other
depositary banks. When added to existing sponsored ADRs, the new
unsponsored programs enable investors to better replicate many of
the world's leading foreign equity indices in US-traded,
dollar-denominated securities. "We've created these new ADRs in
response to the growing demand for international portfolio
diversification from US investors," said Michael Cole-Fontayn,
chief executive officer of The Bank of New York Mellon's Depositary
Receipt Division. "Despite turbulent market conditions, we are not
surprised at the significant investor interest in these securities.
For years, US investors have insisted upon a more complete roster
of international equities for greater portfolio diversification,
and these new unsponsored ADR programs have delivered." Ten leading
foreign equity indices and their corresponding constituent ADR
availability follows: Italy S&P/MIB 100% Sweden OMX 30 97%
Australia ASX 20 95% France CAC 40 95% Hong Kong Hang Seng 95%
United Kingdom FTSE 100 94% Germany DAX 90% Brazil Ibovespa 80%
Japan Nikkei 225 67% India Bombay Sensex 63% The Bank of New York
Mellon acts as depositary for more than 2,100 American and global
depositary receipt programs, acting in partnership with leading
companies from 67 countries. With an unrivalled commitment to
helping securities issuers succeed in the world's rapidly evolving
financial markets, the Company delivers the industry's most
comprehensive suite of integrated depositary receipt, corporate
trust and stock transfer services. Additional information is
available at http://www.bnymellon.com/dr. The Bank of New York
Mellon Corporation is a global financial services company focused
on helping clients manage and service their financial assets,
operating in 34 countries and serving more than 100 markets. The
company is a leading provider of financial services for
institutions, corporations and high-net-worth individuals,
providing superior asset management and wealth management, asset
servicing, issuer services, clearing services and treasury services
through a worldwide client-focused team. It has $19.5 trillion in
assets under custody and administration, $881 billion in assets
under management, services more than $11 trillion in outstanding
debt and processes global payments averaging $1.8 trillion per day.
Additional information is available at http://www.bnymellon.com/.
This release is for informational purposes only. The Bank of New
York Mellon provides no advice, recommendation, or endorsement with
respect to any company or securities. Nothing herein shall be
deemed to constitute an offer to sell or a solicitation of an offer
to buy securities. Depositary Receipts: Not FDIC, State or Federal
Agency Insured; May Lose Value; No Bank, State or Federal Agency
Guarantee. DATASOURCE: The Bank of New York Mellon Corporation
CONTACT: Dori Flanagan, +1-212-815-2291, , or Joe Ailinger,
+1-617-722-7571, , both of The Bank of New York Mellon Corporation
Web Site: http://www.bnymellon.com/
Copyright