EQUITY
INTL Trading makes markets in unlisted ADRs and foreign "ordinary" stocks
that trade in the OTC markets. INTL makes markets in over 200 stocks and will
provide quotes on over 8,000 international issues. Trading unlisted ADRs and
foreign ordinary shares is complicated by limited liquidity, complex local
market settlements and a lack of market participants prepared to commit capital
to these markets. INTL Trading uses its capital and expertise to provide
liquidity to our wholesale customers seeking to buy or sell foreign stocks and
their ADR equivalent.
We are one of the largest US market makers in OTC foreign equities and our leading service includes Price Clarity(TM) in the form
of secure, web-delivered, real-time pricing, and Price Confidence(TM) available
via regularly issued execution quality reports. In addition, our wholesale
partners have the unique ability to broadcast our quotes to an online retail
customer, thus helping them provide better foreign trading service to their
clients. With an unsurpassed commitment to customer service, our trading desk is
a leading player in this market.
ADRs were introduced in 1927 and are now the preferred method of global
investing by US investors with volume exceeding US$ 1 trillion. Of the
approximately 30 billion ADRs shares traded every year, some 25% are unlisted and
trade in the OTC market. The unlisted ADR market has been growing at more than
20% per year since 1995 accounting for around 7.5 billion shares annually.
Since 1970, the non-US portion of the global equity market capitalization has
increased from 34% to over 46%. Over the last 20 years US investors have
increased their foreign investments by over 100 fold. Between 1993 and 2002 the
US market (S&P 500) was never the world’s top performing equity market. (source:
Rimes Technologies Corp. 12/31/02) and many of the world’s industry leaders are
based outside of the US.
