CDRs offer Canadians an affordable way to invest in global businesses
through fractions of shares and with integrated fictitious currency hedging
TORONTO, July 26, 2021 / CNW / – CIBC, NEO and CIBC Mellon are pleased to announce the introduction of the very first Canadian Depositary Receipts (“CDRs”) to be listed on the NEO Exchange. CDRs represent a breakthrough innovation in the way Canadian investors buy and hold stocks in global companies.
Modeled on the American Depositary Receipts (“ADRs”) market, CDRs make it easy to invest in some of the largest companies in the world – in Canadian dollars. CDRs are offered at a fraction of the price per share of the underlying reference stock and have built-in currency hedging. They provide investors with affordable access to foreign stocks while mitigating the currency risk associated with global investments.
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 meet investor needs,” said Christian Exshaw, Managing Director and Head, CIBC Global Markets and Direct Financial Services. “As Canada’s industry leader, CDRs will enable investors around the world to buy stocks cheaply, access institutional foreign exchange rates and efficiently manage their currency risk.”
To bring CDRs to market, CIBC has partnered with CIBC Mellon to leverage their global operational capabilities and expertise in custody asset servicing and with NEO Exchange to list the first CDRs based on the continued commitment of the Exchange for 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 Canada’s capital markets,” said Jos Schmitt, President and CEO of NEO. “We are honored to be partnering with CIBC and CIBC Mellon on this groundbreaking initiative and look forward to supporting CDRs on the NEO Exchange.”
“The Canadian market continues to show an appetite for innovative offerings that will help investors achieve their goals more efficiently,” added Ash Tahbazian, chief client officer, CIBC Mellon. “The CIBC Mellon team is proud to partner with CIBC and the NEO Exchange, leveraging our global operational capabilities to bring CDRs to Canadian investors.”
For more information on CDRs, visit https://cdr.cibc.com or www.neo.inc/en/services/raising-assets/canadian-depositary-receipts.
About CIBC
CIBC is a leading North American financial institution with 10 million retail, business, public and institutional clients. Through its leading digital banking network and locations, CIBC offers a comprehensive range of advice, solutions and services in all areas of private and business customer business, commercial banking and asset management as well as capital markets business Canada with offices in The United States and all over the world. For current press releases and more information about CIBC, please visit www.cibc.com/en/about-cibc/media-centre.html.
Via the NEO exchange
The NEO exchange is Canada Tier 1 exchange for the innovation economy that brings investors and capital providers together in a fair, liquid, efficient and service-oriented environment. Fully functional since June 2015, NEO puts investors first and provides access to trading in all Canadian-listed securities on a level playing field. NEO lists companies and investment products that are looking for an internationally recognized exchange that enables investor confidence, high quality liquidity and broad awareness including unrestricted access to market data.
Connect to the NEO Exchange: Website | LinkedIn | Twitter | Instagram | Facebook
About CIBC Mellon
CIBC Mellon is a Canadian company exclusively focused on providing investment services to asset managers, asset owners, insurance companies and global institutional investors in Canada. As of June 30, 2021, CIBC Mellon had more than CAD 2.4 trillion of managed assets. CIBC Mellon is part of the BNY Mellon network, operating as at June 30, 2021 would have $ 45.0 trillion in custody and / or managed assets. CIBC Mellon is a licensed user of the CIBC trademark and certain trademarks of BNY Mellon, is the corporate trademark of CIBC Mellon Global Securities Services Company and the CIBC Mellon Trust Company and can be used as a generic term to refer to either or. to refer to both companies. www.cibcmellon.com
SOURCE CIBC
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