Trading volume in American depositary receipts reached record levels in 1995, indicating strong investor demand for non-U.S. equities, according to Bank of New York.
ADR trading volume on the U.S. exchanges rose to 10 billion shares, at a value of $278 billion in 1995, representing a 37% increase over 1994's trading volume and a 12% increase in dollar volume.
Furthermore, non-U.S. companies continued to favor the U.S. markets for capital and investors, as 203 new public and private programs from 44 countries were established in 1995.
American depositary receipts allow foreign companies to offer dollar- denominated securities to investors in the U.S. At the close of 1995, there were more than 1,500 such programs, representing 61 countries.
In 1995, The Bank of New York was appointed depository for more than 60% of new public-sponsored depositary receipt programs and new public and private offerings.
Bank of New York acts as depository for the majority of this year's new sponsored ADR programs, including those of Bank of Ireland, Deutsche Bank, LUKoil of Russia, Koor Industries, Petrobras Distribuidora, Portugal Telecom, Mannesmann, the National Grid, Pearson, Pechiney, and Lojas Americanas.