Cross-border transaction fees are on average 20% lower and in certain cases fees are up to 68% lower.
Cash payments from foreign issuers to US investors take between 2-6 weeks. We reduce them to 2-3 days.
Cash from issuers is paid in a foreign currency and converted to USD at unfavorable rates. We apply competitive rates.
Valuable shareholder entitlements are not extended across the border. We aim to extend a wider set of rights such as voting.
Cancellations are currently inefficiently handled due to fragmentation in the legacy environments. We take out any friction.
Today the ADR market is dominated by a small number of banks. We enable all qualified providers to participate in this $1tn market.
Investing in foreign securities is a powerful diversification strategy. We deliver a digital platform to simplify, improve, and grow the DR market.
The information on this page does not constitute investment advice. If you require advice whether DDRs are the right instrument for you, please consult your investment advisor.
DDRs represent USD-denominated securities that have been issued in a foreign currency within a foreign market and are brought into the USA by the DSDC network upon investor demand.
UADRs represent USD-denominated securities that have been issued in a foreign currency within a foreign market and are brought into the USA by a legacy bank upon investor demand.
Managed via international broker relationships and custody chains with unique risks and foreign market exposures.
In case the questions below don't cut it for you, don't hesitate and contact us here.
Investors can approach their brokers and simply place an order with a CUSIP that represents the DDR. In case a DDR does not yet exist for a qualified security, your broker can request the establishment and registration of the desired foreign company in the form of a DDR. If you have further questions, the DSDC does not provide investment advice and we recommend that you consult your investment advisor.
The Flexible Ratio defines how many ordinary shares of the foreign company are in safekeeping to back one DDR unit that is quoted and traded in the US. In general the DSDC aims for a 1:1 ratio of DDR units to foreign shares. However, when a foreign share is significantly below 10 USD per share, multiple shares may back a single DDR unit. As a result, the DDR to ordinary shares ratio might be 1:2 or 1:3. Information on ratios for each security are publicly available. In case of further questions, please contact us via the contact form.
Any competent, regulated provider of relevant securities services may join as a member, and - without further market entry barriers - participate in the $1tn ADR market. The current base of institutions includes US regulated broker-dealers, US regulated transfer agents, and regulated global custodians.
Initially we focus on Unsponsored American Depositary Receipts (UADRs) issued to US investors based on underlying UK equities part of the FTSE 350 index. These securities will be referred to as Digital Depositary Receipts (DDR) and are just the start. As the DDR market grows, our member base is going to extend the universe of available DDRs by adding international markets. The next markets targeted are Germany, France, Italy, Sweden, and Switzerland.
In addition, we aim to support additional security types besides UADRs in digital format. Any extensions to security types will be executed under close consultation with the Securities Exchange Commission in the USA to maximize investor protection and their benefits.
The DSDC network is operated and governed by its members. The market-inspired and co-operative governance framework is anchored in the DSDC’s bylaws and membership agreement. Please contact us for more details.
Market Makers can benefit from a more attractive product for institutional investors, wider arbitrage opportunities against the legacy ADR and underlying securities, enhanced cancellation services, and lower transaction fees that all lead to higher market volumes. Adoption is fast via a graphical user interface and can be fully automated via APIs.
