The first transferable custody receipts (TraCR) in the Australian market have been made available on the Chi-X stock exchange today and will streamline the investment process for local investors looking for United States equity exposure.
The TraCRs relate to Apple shares, providing holders exposure to the financial performance of that stock, and will trade locally during Australian trading hours, in Australian dollars and on an Australian exchange.
The product, launched by Chi-X and Deutsche Bank, will give Australian investors access to the world’s first trillion-dollar company, Chi-X chief executive Vic Jokovic said.
“TraCRs are an exciting and innovative product that has not previously been offered by an Australian market operator,” Jokovic said.
“TraCRs provide, for the first time, Australian investors with access to leading global companies with the protection of trading on a local market. As a TraCR holder, you have a beneficial interest in the underlying US share and, subject to the terms and conditions of issue, the right to convert your TraCR holding into that share.
“TraCRs bring the global investment world to our own backyard.”
Further series of TraCRs, based on US-listed companies, will be launched in Australia in the near future.
Deutsche Bank Australia and New Zealand head of depositary receipts Chris Bagley said the launch of TraCRs with Chi-X in Australia will greatly streamline the investment process for local investors looking for US equity exposure.
“TraCRs are classified as a domestic equity market product and are subject to Australian regulation,” Bagley noted.
“Settlement will occur through CHESS and all distributions will be paid in Australian dollars.
“We believe TraCRs present a convenient and cost-effective way for local investors looking to gain access to US-listed shares.”