Precidian to List First ADRhedged Securities in the U.S. on Cboe, Providing Exposure to Individual International Companies with an Embedded Currency Hedge

• ADRhedged™ securities (ADRHs) are designed to provide U.S. investors simple, cost-effective exposure to the share price of individual international companies with the added benefit of an embedded currency hedge
• New offering in the U.S. builds on success of currency-hedged Canadian Depositary Receipts (CDRs) listed on Cboe Canada
• ADRHs are sponsored by Precidian Investments ("Precidian"), currency hedged by Canadian Imperial Bank of Commerce ("CIBC"), custodied with Bank of New York Mellon ("BNY Mellon") and listed exclusively on Cboe BZX Exchange, Inc. ("Cboe U.S.")

CHICAGO, Oct. 7, 2024 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading securities and derivatives exchange network, announced the listing of new ADRhedged™ securities (ADRH) on Cboe U.S. beginning today. The new ADRHs are sponsored by Precidian Investments, an industry leader in the creation of innovative financial products. To provide the currency hedge for each ADRH, Precidian has engaged CIBC, a leading North American financial institution who pioneered CDRs in Canada in 2021. There are now 65 CDRs listed on Cboe Canada with more than $50 billion CAD in trading volume since launch and $6 billion CAD in assets under management.     

American Depositary Receipts (ADRs) are a 100-year-old financial product that provide a way for U.S. investors to access shares of global companies. Although ADRs trade in U.S. dollars, they come with an additional risk – fluctuations in foreign currency. When the U.S. dollar experiences dramatic appreciation against global currencies, as has been the case in recent years, ADR investors may underperform in U.S. dollar terms.  

Precidian's new ADRHs are designed to provide U.S. investors with simple, cost-effective exposure to individual international companies, with the added benefit of an embedded currency hedge. Each ADRH consists of an ADR on an underlying international company priced at approximately $50 USD per share, combined with a currency hedge designed to help mitigate the currency risk resulting from fluctuating foreign exchange rates between the international company's local currency and the U.S. dollar. By coupling both the share ownership and currency hedge in a single security, ADRHs are designed to give all investors access to a strategy that was, by and large, previously only available to sophisticated institutional investors. ADRHs can be bought or sold like any other exchange traded security. 

"Cboe is the exchange for innovative products, and we are proud to work with Precidian as the exclusive listings exchange for these first-of-their-kind products in the U.S.," said Rob Marrocco, Vice President, Global Head of ETF Listings, Cboe Global Markets. "Leveraging our vast global network of listings exchanges, issuer partners and diverse products, we are able to import product innovation and market structure best practices from one region to another to benefit investors. The currency-hedged CDRs have proven incredibly popular with Canadian investors, and we believe U.S. investors will find similar appeal in the global access and diversification that new ADRHs can provide."   

"Precidian is proud to work with Cboe, CIBC, and BNY Mellon to bring ADRHs to market. This represents another U.S. market first by Precidian and demonstrates our expertise in creating unique, innovative products that address the needs of investors," said Dan McCabe, CEO of Precidian Investments. 

"CIBC is committed to working with its clients to execute market-based solutions that address investor needs," added Christian Exshaw, Managing Director and Head, Global Markets and Direct Financial Services at CIBC Capital Markets. "We are excited to see the U.S. market response to this innovative product." 

The launch of ADRhedged products will occur in phases, with the first three companies – AstraZeneca, HSBC, and Shell – listed on October 7. Cboe anticipates listing 14 additional ADRHs in short order. The ADRHs to be listed include:    

Cboe is currently the second largest ETF listing venue in the U.S. with more than 825 ETF listings. Cboe Europe is the first pan-European listing venue for ETFs, and currently offers approximately 125 listings. Cboe Canada is home to more than 320 listings including public companies, ETFs, and CDRs. There are more than 25 ETFs and 1,200 other investment products quoted on Cboe Australia.  

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world's leading securities and derivatives exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future.  

To learn more about the Exchange for the World Stage, visit www.cboe.com.     

CBOE-E  
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Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with Precidian Investments, CIBC or BNY Mellon. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe disclaims any duty to update the information herein.  

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We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. 

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively;  our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC. 

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. 

SOURCE Cboe Global Markets, Inc.

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