Trading in depositary receipts back in focus on LuxSE
Depositary receipts (DRs) appear to be firmly back on investors’ radar. Trading activity on the Luxembourg Stock Exchange (LuxSE) has accelerated in recent months, reflecting renewed interest in instruments that facilitate cross-border equity exposure while remaining within familiar European trading and settlement environments.
To better understand this trend, we spoke with Guy Weymeschkirch, Head of Markets & Surveillance at LuxSE, about the evolving role of depositary receipts on the exchange.
There are two main types of depositary receipts: American depositary receipts (ADRs), which are typically listed and traded in the United States, and global depositary receipts (GDRs). These are generally listed in international financial centres and made available to investors across multiple markets, often in Europe, including on LuxSE. Like other listed equities, GDRs are traded through an order book with a continuous trading phase, allowing investors to buy and sell securities with real-time price transparency and immediate execution.
By reducing operational and administrative complexities linked to international investing, DRs provide investors with efficient access to foreign companies while supporting portfolio diversification across regions and sectors.
This growth has been largely driven by strong activity in the GDRs of SK Hynix, the South Korean semiconductor manufacturer. Other issuers, including Samsung SDI, Hindalco Industries and ASUSTeK Computer, have also contributed to renewed trading momentum.
More broadly, we are seeing investors return to listed instruments that simplify cross-border equity exposure, particularly when they seek share-like exposure but prefer European market infrastructure and established settlement flows. DRs effectively bridge that gap by packaging foreign shares into securities that can be traded within the investor’s own market ecosystem.
Today, more than 90 GDR programmes are listed on LuxSE, primarily originating from South Korea, India and Taiwan. This underlines the Exchange’s role as an established European venue for international DR listings.
While DRs represent a specialised segment within the broader exchange landscape, they play a distinct strategic role. LuxSE lists more than 50,000 securities across asset classes, and DRs contribute to this ecosystem by connecting issuers from international and emerging markets with European and global investors through a recognised regulatory and settlement framework.
As market interest strengthened, several trading members reactivated or expanded activity in this segment, contributing to higher liquidity and trading frequency. The increase therefore reflects both market dynamics and broader participation from exchange members.
Looking ahead, liquidity conditions are expected to improve further. The planned introduction of dedicated market makers in selected DR securities should support price formation, tighten spreads and encourage more consistent trading activity.
With improved infrastructure, growing investor awareness and sustained interest in international technology exposure, we expect to see continued DR trading activity on LuxSE over the coming months.
To better understand this trend, we spoke with Guy Weymeschkirch, Head of Markets & Surveillance at LuxSE, about the evolving role of depositary receipts on the exchange.
What exactly are depositary receipts?
Depositary receipts (DRs) are financial instruments issued by a depositary bank that represent shares in a foreign company. Rather than purchasing shares directly in the issuer’s domestic market, investors can trade these receipts on their local exchange while benefiting from familiar trading, settlement and custody arrangements.There are two main types of depositary receipts: American depositary receipts (ADRs), which are typically listed and traded in the United States, and global depositary receipts (GDRs). These are generally listed in international financial centres and made available to investors across multiple markets, often in Europe, including on LuxSE. Like other listed equities, GDRs are traded through an order book with a continuous trading phase, allowing investors to buy and sell securities with real-time price transparency and immediate execution.
By reducing operational and administrative complexities linked to international investing, DRs provide investors with efficient access to foreign companies while supporting portfolio diversification across regions and sectors.
Trading in DRs has picked up strongly on LuxSE. What is driving this renewed momentum?
We have indeed observed a significant increase in DR trading activity. The number of DR trades on LuxSE increased fivefold between 2024 and 2025, signaling a clear re-engagement from market participants. Momentum has continued into 2026, with trading volumes in the first two months of the year already exceeding full-year 2025 levels.This growth has been largely driven by strong activity in the GDRs of SK Hynix, the South Korean semiconductor manufacturer. Other issuers, including Samsung SDI, Hindalco Industries and ASUSTeK Computer, have also contributed to renewed trading momentum.
More broadly, we are seeing investors return to listed instruments that simplify cross-border equity exposure, particularly when they seek share-like exposure but prefer European market infrastructure and established settlement flows. DRs effectively bridge that gap by packaging foreign shares into securities that can be traded within the investor’s own market ecosystem.
How significant is the DR footprint on LuxSE today?
LuxSE’s involvement in DRs dates back several decades. In 1990, Samsung brought the first GDR to LuxSE, a milestone often regarded as a turning point for the development of the GDR format in Europe.Today, more than 90 GDR programmes are listed on LuxSE, primarily originating from South Korea, India and Taiwan. This underlines the Exchange’s role as an established European venue for international DR listings.
While DRs represent a specialised segment within the broader exchange landscape, they play a distinct strategic role. LuxSE lists more than 50,000 securities across asset classes, and DRs contribute to this ecosystem by connecting issuers from international and emerging markets with European and global investors through a recognised regulatory and settlement framework.
How do you see trading activity evolving going forward?
Recent trading growth has been closely linked to renewed momentum in global technology stocks, which has directed investor attention towards DRs representing leading Asian technology companies.As market interest strengthened, several trading members reactivated or expanded activity in this segment, contributing to higher liquidity and trading frequency. The increase therefore reflects both market dynamics and broader participation from exchange members.
Looking ahead, liquidity conditions are expected to improve further. The planned introduction of dedicated market makers in selected DR securities should support price formation, tighten spreads and encourage more consistent trading activity.
With improved infrastructure, growing investor awareness and sustained interest in international technology exposure, we expect to see continued DR trading activity on LuxSE over the coming months.
