DX TV | 1 SEPTEMBER 2010 | Why are European ADRs increasingly in demand

 As cited in this week’s Barron’s magazine (August 30th ‘Two Different Worlds’), the popularity of short selling European companies via their US listing (ADR) tells us of the differing views being held by investors on either side of the Atlantic. The current rise in demand to borrow European ADRs contradicts the two‐year trend in which we’ve seen a reduction in demand to borrow US and European equities for short covering purposes.