In the past year, ConvergEx added over 50 ADR trading clients and saw its revenue grow 35%. With the addition of new emerging markets including Indonesia, Malaysia, Thailand and Turkey, ConvergEx continued to expand the number of available markets for electronic ADR conversion trading. The firm was also granted a patent for the proprietary technology that is found in ConvergExâs ADR products: ADR DirectÂ®, Reverse ADRSM and ADR PlusSM.
â2010 was a banner year for ConvergExâs ADR business. Our tools offer unsurpassed transparency and real-time ADR conversions and our clients continue to recognize the value of our ADR team and superior technologies,â said Andrew Levine, managing director and head of ConvergEx's ADR business.
ConvergExâs ADR product suite offers clients a unique solution to easily and automatically convert ordinary shares to ADRs and ADRs to ordinary shares in real-time. They extend trading hours, minimize market impact, reduce trading costs and offer transparency. These products are available to all clients who can access the technologies directly on their desktops or through ConvergEx's ADR Desk. ConvergEx offers ADR execution capabilities in 30 countries throughout Europe, Asia, South America, the Middle East and Africa.
ConvergExâs comprehensive ADR offering includes:
â¢ ADR Direct â This groundâbreaking product allows clients to trade ordinary shares overseas, convert the shares to ADRs in U.S. dollars and receive a net ADR price in real-time. With ADR Direct, a client settles the ADR portion of the trade through the U.S. settlement system.
â¢ Reverse ADR â Investors can extend the local trading day into U.S. trading hours, continue to trade when there is news or to diversify trading markets during the Europe/U.S. overlap. With Reverse ADR, clients can trade ADRs in the U.S., receive a local currency conversion price and settle the trade in ordinary shares in the local currency, all according to the local settlement cycle.
â¢ ADR Plus â An algorithmic strategy that allows clients to optimally source liquidity for their ADR trades in both the overseas and U.S. markets. ADR Plus automatically converts to and from ADRs. For U.S. 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 U.S. symbols from their OMS or EMS in the same way they would for an order traded in the U.S.