The Bank of New York Reports Depositary Receipt Share Trading Volume Grows 3% in 2002; NASDAQ Introduces The BLDRSSM Family of Exchange-traded Funds Based Upon the Bank of New York ADR Indexes.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 11, 2002 The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. reported today that 2002 depositary receipt depositary receipt A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE NYSE See: New York Stock Exchange ), the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX AMEX See: American Stock Exchange ) and The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (NASDAQ) totaled 32 billion shares, up 3% from 2001. Total dollar trading was valued at $544 billion. All values are projected from date of report to year-end 2002. Companies from Sweden, United Kingdom, Finland, the Netherlands, Taiwan and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. had depositary receipt programs with the greatest depositary receipt trading volume. Programs with the most active volume of depositary receipt trading activity were primarily from the telecommunications and technology sectors: Ericsson (Sweden), Nokia (Finland), and Taiwan Semiconductor Manufacturing (Taiwan). The following is a chart of the top 20 most actively traded depositary receipts in 2002. All trading volume numbers and dollar amounts are as of November 30, 2002. In addition, italicized names throughout this report indicate programs for which The Bank of New York acts as depositary bank. For the first 11 months of 2002, The Bank of New York had 15 out of 24, or 63%, of new listings.
20 Most Actively Traded Depositary Receipts in 2002
COMPANY COUNTRY INDUSTRY
------- ------- --------
ERICSSON LM 'B' SHS Sweden Communications Tech.
NOKIA Finland Communications Tech.
TAIWAN SEMICONDUCTOR MANUFACTURING Taiwan Semiconductors
ELAN Ireland Pharmaceutical
ROYAL DUTCH PETROLEUM Netherlands Energy
VODAFONE GROUP UK Wireless Comm.
UNITED MICROELECTRONICS Taiwan Semiconductors
South
DURBAN ROODEPOORT DEEP Africa Mining & Metals
ASML Netherlands Elec.Component&Equip
BP UK Energy
South
GOLD FIELDS Africa Mining & Metals
South
HARMONY GOLD MINING Africa Mining & Metals
TELEFONOS DE MEXICO (L) Mexico Fixed Line Comm.
STMICROELECTRONICS France Semiconductors
TELE NORTE LESTE Brazil Fixed Line Comm.
MARCONI PLC UK Communications Tech.
PETROLEUM GEO-SERVICES Norway Energy
SAP Germany Software
ALCATEL France Communications Tech.
UNILEVER N.V. Netherlands Food
DOLLAR
TRADING TRADING
COMPANY VOLUME VOLUME
------- ------- -------
ERICSSON LM 'B' SHS 4,505,180,432 $9,413,260,279
NOKIA 2,807,065,821 $47,707,141,123
TAIWAN SEMICONDUCTOR MANUFACTURING 1,345,002,718 $17,258,402,124
ELAN 1,190,433,109 $11,684,118,496
ROYAL DUTCH PETROLEUM 833,476,228 $37,265,741,962
VODAFONE GROUP 816,114,913 $13,922,396,819
UNITED MICROELECTRONICS 787,546,591 $5,572,180,942
DURBAN ROODEPOORT DEEP 757,725,432 $2,828,857,456
ASML 618,528,720 $9,502,510,964
BP 584,195,313 $26,558,419,424
GOLD FIELDS 571,450,807 $6,524,480,436
HARMONY GOLD MINING 460,682,124 $6,308,539,803
TELEFONOS DE MEXICO (L) 388,315,904 $13,130,237,392
STMICROELECTRONICS 371,001,808 $8,974,108,883
TELE NORTE LESTE 342,569,392 $3,466,860,922
MARCONI PLC 316,564,012 $98,949,967
PETROLEUM GEO-SERVICES 315,175,409 $1,196,883,740
SAP 313,962,715 $7,779,306,182
ALCATEL 295,038,616 $2,565,946,107
UNILEVER N.V. 282,682,805 $16,398,454,875
Timothy F. Keaney, managing director and head of The Bank of New York's Depositary Receipt Division, said, "The increase in depositary receipt trading volume is a positive market statement." Twenty-four companies listed their programs on the NYSE, NASDAQ or AMEX during the year. Among them were Prana Biotechnology Limited (Australia); Banco Itau (Brazil), Companhia de Saneamento Basico do Estado de Sao Paulo-Sabesp (SABESP) (Brazil); Sanofi-Synthelabo (France), Sodexho Alliance (France); Altana (Germany), Bayer (Germany); Coca-Cola Hellenic The Coca-Cola Hellenic Bottling Company is an anchor bottler in the Coca-Cola System and the second largest bottler outside the United States. It is the bottler in 28 countries, primarially in eastern Europe, with a population totaling 540 million. Bottling Company A bottling company is a commercial enterprise whose output is the bottling of beverages for distribution. Many bottling companies are franchisees of corporations such as Coca-Cola and PepsiCo who distribute the beverage in a specific geographic region. (Greece); Konami Corporation (Japan), NTT DoCoMo (NTT Mobile Communications Network, Inc., Japan) Founded in 1991, NTT DoCoMo is a spinoff of Japan's NTT (Nippon Telegraph and Telephone Corporation) which provides wireless services, including cellular, paging, satellite and maritime and in-flight telephone services. (Japan); and Gold Fields Gold Fields Limited is one of the world’s largest unhedged producers of gold, providing investors with maximum leverage to the gold price. The company was formed in 1998 with the amalgamation of the gold assets of Gold Fields of South Africa Limited and Gencor Limited. and Harmony Gold "Harmony Gold" may refer to:
In 2002, companies from 31 countries established 121 new public and private depositary receipt programs compared to the same period last year in which companies from 29 countries established 135 programs. Additionally in 2002, non-U.S. companies and governments from 13 countries raised approximately $6.2 billion through 29 depositary receipt offerings compared to last year's $8.4 billion raised through 26 offerings by non-U.S. companies and governments from 16 countries. Offerings included the privatizations of China Telecom from China and SABESP and Companhia Vale do Rio Doce Summary Companhia Vale do Rio Doce (CVRD) is a global diversified mining company, the second largest mining company in the world, and the largest logistics operator in Brazil. (CVRD CVRD Companhia Vale do Rio Doce (Brazilian mining company) CVRD Cowichan Valley Regional District (Vacouver Island, British Columbia, Canada) CVRD Converter, Variable Resistance, to DC Voltage ), both from Brazil, and LUKOIL from Russia. Additional capital raisings through rights offerings included Telesp Celular, from Brazil, and Ericsson, from Sweden. A notable merger using depositary receipts was the January merger between National Grid national grid Noun Brit & NZ 1. a network of high-voltage power lines linking major electric power stations 2. the arrangement of vertical and horizontal lines on an ordnance survey map Group and Niagara Mohawk Holdings Inc., valued at approximately $3 billion. Geographic Review Asia-Pacific Companies from eight countries in Asia-Pacific established 48 new programs. Most notable among this group were the privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of China Telecom, which raised capital and listed its depositary receipts on the NYSE, Kirin Brewery from Japan, which trades on NASDAQ, and Nissin, which listed its depositary receipts on the NYSE and is also from Japan. The Reliance Group from India had capital raisings for two of its companies: Reliance Port and Reliance Utilities. Additionally, the following companies raised capital through depositary receipt offerings: Kookmin Bank Kookmin Bank (hangul:국민은행) is the largest bank by both asset value and market capitalization in South Korea. The bank is led by Kang Chung-Won who previously worked for Seoulbank and oversaw its sale to competitor Hana Bank before moving to , Korea Tobacco & Ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. , both from Korea, Powerchip Semiconductor Powerchip Semiconductor is a maker of DRAM memory chips and other semiconductor chips. Powerchip also sells foundry services to other firms. The company was founded in 1994 at Hsinchu Science Park in Taiwan. It has four fabrication lines, three of which handle 300mm silicon wafers. Corp., ProMos Technologies, Realtek Semiconductor Corp., Ambit Microsystems Corp., and AU Optronics, all from Taiwan. Europe Companies from 16 countries in Europe established 44 new programs. Among the new programs were Altana, the international pharmaceutical and chemicals group from Germany, Coca-Cola Hellenic Bottling Company, the Greek bottler, Sodexho Alliance, the French food and management services company, and Sanofi-Synthelabo, the international pharmaceutical company from France. All listed their depositary receipts on the NYSE. Latin America Companies from five countries in Latin America established 24 new programs. Three Mexican companies, America Telecom, Corporacion GEO and Grupo Gomo established over-the-counter depositary receipt programs, while the Chilean banking sector saw the creation of two newly merged entities with leading market share; they are Banco Santander Chile and Banco de Chile The Banco de Chile (Chile Bank), is the second biggest banking group of Chile, behind the Banco Santander Santiago followed by the BBVA Chile. Founded the 28 of October of 1893 by the fusion of the banks of Valparaiso (1855), National of Chile (1865) and Agriculturist (1869). . Capital raisings included the privatizations of SABESP and CVRD from Brazil and the sale of the Mexican government's stake in BBVA Bancomer. Middle East and Africa Companies from two countries in the Middle East and Africa established five new public and private programs. They included South Africa's Harmony Gold Mining, which listed on the NYSE, and Randgold Resources, which completed its NASDAQ listing and offering. Additionally, a global depositary receipt program was established for Orascom Construction from Egypt. The Bank of New York Performance BLDRSSM November 13, 2002, marked the launch of the BLDRSSM family of exchange-traded funds. The Bank of New York is trustee and provides the index for the BLDRS (Baskets of Listed Depositary ReceiptS), and NASDAQ is the sponsor. BLDRS are based on four Bank of New York ADR Indexes and are the first exchange-traded funds to benchmark to ADR indexes. They are also the first exchange-traded funds (ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). ) to list on NASDAQ. Joseph M. Velli, senior executive vice president of The Bank of New York's Worldwide Securities Processing Services Sector, said, "As the world's largest depositary bank, we are delighted to be associated with an ETF family that offers investors another innovative solution as they continue to globalize glob·al·ize tr.v. glob·al·ized, glob·al·iz·ing, glob·al·iz·es To make global or worldwide in scope or application. glob their portfolios. This is a major development for the depositary receipt and exchange-traded fund industries. The BLDRS Fund family broadens the advantages and enhances the visibility of depositary receipts as a convenient and cost-effective way to invest in non-U.S. issuer securities." BLDRS Funds hold a portfolio of depositary receipts and can be bought and sold throughout the trading day similar to shares of stock. The BLDRS Funds enable investors to purchase a basket of depositary receipts with one simple and cost-effective transaction, as each BLDRS Fund has its ordinary expenses capped at 0.30%. A BLDRS Fund offers the advantage of access to a depositary receipt index with the ease of stock trading. Investors will be able to purchase shares on margin, short sell shares, or hold for the long term. In addition, shares can be purchased throughout the trading day at intra-day prices. Each BLDRS Fund seeks to achieve investment results that correspond to the price and yield performance, before fees and expenses, of its respective index. Each benchmark index is constructed based upon the market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , liquidity and price of the depositary receipts. BLDRS represents a new way to diversify institutional and retail portfolios by investing in international equities through a unit investment trust with low expense ratios. The BLDRS funds include two market index funds and two regional index funds: BLDRS Emerging Markets 50 ADR Index Fund (Ticker Symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors ADRE ADRE Arizona Department of Real Estate ADRE Associate Director for Research and Education ) BLDRS Developed Markets 100 ADR Index Fund (Ticker Symbol ADRD ADRD Alzheimer Disease and Related Dementias ADRD Another Drug Related Death ADRD Automatic Data Rate Detection ) BLDRS Europe 100 ADR Index Fund (Ticker Symbol ADRU ADRU Alcohol and Drug Unit ) BLDRS Asia 50 ADR Index Fund (Ticker Symbol ADRA ADRA Adventist Development and Relief Agency ADRA Agencia Adventista para el Desarrollo y Recursos Asistenciales (Peru) ADRA Agence Adventiste d'Aide et de Développement (French) ) Up-to-date BLDRS fund information and a prospectus can be found at www.bldrsfunds.com. The Bank of New York ADR ADR - Astra Digital Radio IndexSM Since March 1998, The Bank of New York ADR IndexSM (the Index) has been the only index to track all depositary receipts and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of shares traded on the NYSE, AMEX and NASDAQ. The Index is calculated on a continuous basis throughout the trading day and is capitalization-weighted and adjusted for free-float using Dow Jones' current methodology. The indexes have a free-float market capitalization of approximately $3.6 trillion. The Index comprises 41 country indexes with over 500 companies measured in a total of 59 sub-indexes. All of the Bank's indexes are available real-time through Bloomberg, Reuters and Bridge terminals, providing investors with the most comprehensive information about the depositary receipt market. In addition, Dow Jones newswires Dow Jones Newswires is the real-time financial news organization owned by Dow Jones. Founded in 1882, its primary competitors are Bloomberg L.P. and Reuters. The company reports more than 420,000 subscribers -- including brokers, traders, analysts and fund managers -- as of July , Reuters newswires, AFX AFX atypical fibroxanthoma. newswires and the Financial Times each publish daily depositary receipt reports or tables incorporating information from various Bank of New York indexes, and every Wednesday, the Financial Times features "ADR Watch," a segment on trends and new developments in the depositary receipt market. The Bank of New York ADR Index is the premier depositary receipt benchmark for institutions and individuals as evidenced by the over $30 billion currently benchmarked against it. The Bank of New York's Depositary Receipt Products and Technology Depositary Receipt Web Site - www.adrbny.com The Bank of New York's depositary receipt website, adrbny.com, is a highly interactive research tool that offers a comprehensive and useful set of analytics to users around the globe. Designed to provide the most up-to-date market information, adrbny.com responds to the investment community's growing need for enhanced depositary receipt market intelligence by offering a wide range of international coverage and performance measurement tools. Our recent enhancements further demonstrate our continuing commitment to deliver timely and value-added content to our online constituents including the Bank's depositary receipt clients, their investors, and the trading community. In October, The Bank of New York announced the launch of its new DR Performance Analytics, designed to evaluate price performance and trading volume of all exchange-traded depositary receipts. DR Performance Analytics is a natural extension of adrbny.com's comprehensive market coverage and provides quantitative analytics to enable participants to track and measure depositary receipt market activity. Key performance tables are designed to spotlight the market's top performers. In addition to "Top 50 Most Active DRs" and "Top 50 Most Active DRs with Price Up/Down," users may view "Top 50 Price Performers" by both daily and year-to-date percentage change. The DR Market Round-Up was introduced in September to provide depositary receipt investors with European and Asian equities-focused financial news. The DR Market Round-Up provides a direct news source for adrbny.com users who want to stay informed about recent performance and current trends within the depositary receipt marketplace. Sourced daily, each edition spotlights market movements for non-U.S. companies with depositary receipt programs and includes corporate announcements, evaluations of economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. and the resulting impact on The Bank of New York Indexes. The DR Market Round-Up is sourced by AFX News Ltd. (AFX), a wholly-owned subsidiary of Agence France-Presse. AFX provides global news coverage of financial markets, companies and economies to professional and private investor communities and specializes in building real-time business and financial news services in market-oriented editorial styles. ADR Insight ADR Insight is our advanced institutional shareholder identification program designed to assist the Bank's depositary receipt clients in the identification of current and potential investors. Designed to complement and enhance investor relations Investor relations The process by which the corporation communicates with its investors. activities, ADR Insight provides clients with an easy-to-use dynamic source of shareowner data. This highly interactive resource includes an extensive array of reports, hypertext links and spreadsheet reporting to allow users to sort, analyze and interpret ownership data. Clients can view and download reports to perform peer analysis and research historical company and institutional filer holdings. BKDR- Reaching Investors Through Bloomberg ProfessionalTM In June, The Bank of New York created a new streamlined depositary receipt information service on the Bloomberg Professional(TM) terminal. Reaching more than 260,000 market professionals in over 100 countries, BKDR provides Bloomberg users with free access to key market information and depositary receipt news, as well as a direct link to adrbny.com. The Bank of New York, provider of the depositary receipt data, updates BKDR throughout the trading day to supply Bloomberg users with the latest market information. The BKDR page includes the Bank's Complete DR Directory, a list of recent corporate actions, various depositary receipt publications, and comprehensive analytics related to The Bank of New York ADR Index. The Bank of New York is the world's largest depositary for American and global depositary receipts, allowing non-U.S. companies to offer dollar-denominated securities to investors worldwide. The Bank currently issues depositary receipts for more than 1,400 programs representing 70 countries and accounts for 66% of all public sponsored depositary receipt programs. The Bank of New York, founded in 1784 by Alexander Hamilton, is the United States' oldest bank and is the principal subsidiary of The Bank of New York Company, Inc. (NYSE: BK), a financial holding company. With over $80 billion in total assets as of September 30, 2002, the Company provides a complete range of banking and other financial services to corporations and individuals worldwide through its basic businesses, namely, Securities Servicing and Global Payment Services, Corporate Banking, BNY BNY Bank of New York Asset Management and Private Client Services, Retail Banking, and Global Market Services. Additional information on the Company is available at www.bankofny.com. |
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