CIBC blazes a Canadian trail with CDRs

Industry-leading investment vehicles listed on NEO helps Canadian investors search for high-priced global stocks

CIBC blazes a Canadian trail with CDRs

CIBC, in partnership with NEO and CIBC Mellon, has launched the first-ever Canadian Depositary Receipts (CDRs) on the NEO Exchange.

Billed as a landmark innovation in how Canadian investors buy and hold shares of global companies, CDRs are designed to help Canadians invest in some of the world’s largest companies.

With a built-in notional currency hedge and costing just a fraction of the price per share of the underlying reference shares, they let investors access foreign stocks affordably. And because they are offered in Canadian dollars, they mitigate the foreign-exchange risk typically associated with global investing.

“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."

The initial suite of CDRs to be listed for trading on the NEO Exchange includes:

  • Alphabet Canadian Depositary Receipts (CAD Hedged) – GOOG
  • 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

To introduce CDRs in Canada, CIBC tapped the global operational capabilities and custody asset servicing expertise of CIBC Mellon. The company also chose the NEO Exchange, which is well-known for its continuous commitment to innovation.

“We pride ourselves on doing things differently to level the playing field for investors, while modernizing Canadian capital markets,” said NEO President and CEO Jos Schmitt. “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,” said Ash Tahbazian, chief client officer at 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.”


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