Luxembourg Depository Receipt
What is a Luxembourg depository receipt?
A Luxembourg depository receipt is a certificate issued that represents the purchase or ownership of foreign assets that are placed for deposit in a Luxembourg based account. These certificates signify the ownership of either a notional amount of bonds or an underlying number of shares.
Where have you heard about Luxembourg depository receipts?
Luxembourg depository receipts are renowned for their efficiency when an institution is seeking to ensure the safety of assets (which are then deposited into the account) but a particular national or regional bank is needed to handle a variety of transactions.
What you need to know about Luxembourg depository receipts.
The trading and settlement value of Luxembourg depository receipts are difficult to attain as the call for using specific local markets makes the proportional analysis of this market increasingly difficult. The price of a Luxembourg depository account is often very close to that of the instrument that it's holding but they are traded and settled autonomously and often in smaller lots. The Luxembourg depository receipt is one of many different types of depository receipts – the others include Global, European, American and Indian depository receipts.