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Sheldon Capital specialises in ADRs and other foreign listings of shares of UK companies. We are a market leader in crossbook swaps between ADRs and the respective ordinary shares 
ADR programmes ADR crossbook swaps

The majority of British blue chip companies operate sponsored ADR programmes via one of the leading Depositary Banks. Shareholders in the UK (primary) listing can convert their ordinary shares into American Depositary Receipts (ADRs) by paying 1.5% Stamp Duty Reserve Tax (SDRT) to the UK Inland Revenue and up to 5c per ADR to the Depositary Bank.  Conversely, holders of ADRs can convert their ADRs back to ordinary shares for a fee up to 5c per ADR (without recovering the 1.5% SDRT).


ADRs can also be traded in the open market (either on exchange or over-the-counter).  An increasing percentage of ADR trades are now carried out on a crossbook swap basis: two counterparties agree to swap ADRs for ordinary shares at a given premium (quoted in %) over the ordinary shares.  Both legs of the swap are traded in the same currency and then settled on a DvP basis via Crest for the UK leg and DTC for the ADRs. These swaps are free of the 1.5% SDRT as there is no creation of new ADRs.


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Sheldon Capital Ltd, PO Box 63585, London N6 9BP, United Kingdom