Global Depositary Receipts
GDRs are transferable securities which represent ownership of a given number of a foreign company's shares and can be listed and traded independently from the underlying equity.
Issuers currently have two markets on which to have their GDRs admitted to trading:
- the London Stock Exchange (LSE) Regulated Market, which is an EU regulated market under MiFID; and
- the LSE Professional Securities Market (PSM) which is regulated by the LSE but is not an EU regulated market under MiFID.
GDRs, on both the LSE EU regulated market and the LSE Professional Securities Market, are traded on separate segments of the LSE's International Book – the IOB and the IOB(U) respectively.
Under the EU prospectus directive, the issuer is required to publish a prospectus regarding the GDRs if these are being admitted to trading on an EU regulated market and/or if they are being offered to the public.
Where a prospectus is not required under the prospectus directive and the issuer is seeking admission to the exchange regulated PSM, listing particulars regarding the GDRs must be prepared in line with the relevant listing rules and approved by the Global Debt Group.
Where a prospectus is required, this must be prepared in line with the relevant prospectus and listing rules, and approved by the Global Debt Group.
Further information is available on continuing obligations.