An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. Depositary banks that issue ADRs can charge fees to holders, based on both the number of shares held on the record date and the applicable rate.
For the issues that DTCC tracks, DTCC monitors record dates. When a record date occurs, DTCC captures the participant's holdings, calculates fees, charges the participant, and pays the depositary bank.
Participants can perform inquiries on Depositary Service Fee (DSF) details.
DTCC provides monthly billing reports to participants via Smart/Search.
To begin collecting on an ADR issue through DTCC, the depositary bank sends a notice to DTCC, which DTCC then publishes as an Important Notice.
DTCC adds and maintains a tracking request, which captures the CUSIP, depositary, record date, fees, and related details.
DTCC reviews the request and either approves or rejects it.
DTCC provides the following reports to participants and ADR depositary banks via SMART/Search:
• Participant ADR Fee Report
• Depositary ADR Fee Report