Foreign Stock JDR makes it easier to bring Foreign Stocks into Japanese market and trade it smoothly.
Foreign Stock JDR is tradable same as Japanese domestic stock.
What is Foreign Stock JDR?
- JDRs (Japanese Depositary Receipts) are negotiable securities which indicate ownership of shares issued by foreign companies. They are listed and traded on Japanese Stock Exchange.
- JDRs make it easier to distribute foreign stocks, ETFs and ETNs within Japan.
- Foreign Stocks are tradable on stock exchange in Japan, when listed as Foreign Stock JDR after trust bank issues JDRs backed by Foreign Stocks issued by a foreign company (Issuer).
Characteristics of JDR
issuing JDRs can increase corporate and brand visibility at an international level.
JDRs are traded on stock exchange in Japan in accordance with Japanese market customs, which will expand investor's opportunities.
- Tradable on almost all the securities houses in Japan (also margin trading is available on many of them)
- Specified Account available
- Settlement distribution in JPY
- Same taxation as that of Japanese equities in Japan
[Outline of JDR scheme]
- A securities house purchases the foreign stocks of Issuer Company.
- The securities house entrusts a trust bank with the Foreign Stocks and the trust bank issues JDRs to the securities houses (using the book-entry transfer system of JASDEC)
- Foreign Stock JDRs will be traded on the Japanese Stock exchange.
* Above is a model scheme of an Foreign Stocks JDR and may differ by products.
Our JDR Services
- Scheme Structuring
- Asset Administration
- JDR issuance
- Calculation and payment of JDR distribution etc.
- Since 2006, we have investigated the listing of JDRs.
- In July 2010, we launched Japan Physical Precious Metal ETF("Fruit of Gold" series), listed on the TSE using similar scheme to JDR.
- In July 2011, we have begun providing ETN-JDR Services, First in Japan.
- In February 2012, we have begun providing ETF-JDR Services, First in Japan.
- In September 2017, we have begun providing Foreign Stock JDR Services, First in Japan.