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Industry-First Canadian Depositary Receipts (“CDRs”) on the NEO Exchange

  • Last Updated:
  • Aug 10th, 2021 6:32 pm
[OP]
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Aug 17, 2004
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33 upvotes
Toronto

Industry-First Canadian Depositary Receipts (“CDRs”) on the NEO Exchange

CDRs provide an affordable way for Canadians to invest in global companies through fractional share ownership and with a built-in notional currency hedge

Toronto | July 26, 2021 – CIBC, NEO, and CIBC Mellon are excited to announce the launch of the first-ever Canadian Depositary Receipts™ (“CDRs”), which will be listed on the NEO Exchange. CDRs represent a groundbreaking innovation in the way Canadian investors buy and hold shares of global companies.

Modeled after the American Depositary Receipts (“ADRs”) market, CDRs make it easy to invest in some of the world’s largest companies – in Canadian dollars. Offered at a fraction of the price per share of the underlying reference share, and with a built-in notional currency hedge, CDRs provide investors with affordable access to foreign stocks while mitigating the currency risk associated with global investing.

The first CDRs that will be available for trading on the NEO Exchange are listed below, with many more planned for the future:

Alphabet Canadian Depositary Receipts (CAD Hedged) – GOOG
Amazon.com Canadian Depositary Receipts (CAD Hedged) – AMZN
Apple Canadian Depositary Receipts (CAD Hedged) – AAPL
Netflix Canadian Depositary Receipts (CAD Hedged) – NFLX
Tesla Canadian Depositary Receipts (CAD Hedged) – TSLA
“CIBC is committed to developing innovative, market-based solutions that address investor needs,” said Christian Exshaw, Managing Director and Head, CIBC Global Markets and Direct Financial Services. “As a Canadian industry-first, CDRs will allow investors to affordably purchase global equities, access institutional FX rates, and efficiently manage their currency risk.”

To bring CDRs to market, CIBC partnered with CIBC Mellon to leverage their global operational capabilities and custody asset servicing expertise, and with the NEO Exchange to list the inaugural CDRs, based on the exchange’s continuous commitment to innovation.

“At NEO, innovation is part of our DNA. We pride ourselves on doing things differently to level the playing field for investors, while modernizing Canadian capital markets,” said Jos Schmitt, President and CEO of NEO. “We are honoured to partner with CIBC and CIBC Mellon on this game-changing initiative, and look forward to championing CDRs on the NEO Exchange.”

“The Canadian market continues to demonstrate an appetite for innovative offerings that help investors achieve their goals more efficiently,” added Ash Tahbazian, Chief Client Officer, CIBC Mellon. “The team at CIBC Mellon is proud to collaborate with CIBC and the NEO Exchange and leverage our global operational capabilities to bring CDRs to Canadian investors.”

Source: https://www.neo.inc/en/about/press-rele ... o-exchange
"Our lives are defined by opportunities. Even the ones we miss."
2 replies
[OP]
Deal Addict
Aug 17, 2004
2178 posts
33 upvotes
Toronto
so far they have launched

SYMBOL NAME PREVIOUS CLOSE LAST PRICE CHANGE % TRADES VOLUME
AMZN AMAZON.COM CDR (CAD HEDGED) 21.05 20.89 -0.76 207 78,978
"Our lives are defined by opportunities. Even the ones we miss."

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