Transferable Custody Receipts (TCRs)
Transferable Custody Receipts (TCRs) represent ownership in the shares of a foreign company or security trading on the local Stock Exchange. They are financial instruments or mechanisms that enable local investors to buy foreign securities in local currency and without undertaking cross-border transactions.
Deutsche Bank developed the first TCRs in 1995, based on the concept of "American Depositary Receipt" (ADR), successfully implementing them in Argentina, Mexico, Chile and more recently in Brazil and Colombia.
The holder of a TCR has the same right than the holder of the TCR’s underlying security.
The TCRs may represent shares, ADRs, ETFs or bonds. TCRs offer several benefits to the investors, to the brokers as well as to the local market since they allow to diversify investor’s portfolios while maintaining the transactional value chain within the local orbit.
The TCR is an investment alternative for a local investor who wishes to invest directly and easily in foreign securities providing the opportunity to perform such operation with the features, procedures and benefits of a local security.
